Credit brokers cash in on money worries

People are being hit by multiple unexpected fees as credit brokers share customers’ personal details in order to siphon money from peoples’ bank accounts, Citizens Advice has warned. The Financial Ombudsman Service l has today reported that 10,000 people have contacted them to complain about credit brokers.

Gillian Guy, Chief Executive of national charity Citizens Advice, said:

“Credit brokers are cashing in on people’s money troubles. Data-sharing between brokers means that would–be borrowers are being hit with multiple fees from firms they have never contacted. Despite being charged for a brokerage service, many people still don’t get a loan.

“Credit brokers must be honest and up-front about the fees that they charge and the service they will provide. It’s good news that the CMA is investigating the credit brokerage industry, and it’s vital that the FCA looks into the problems and takes tough action against brokers who flout the rules.”

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Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk

  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers

  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends

  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.