The Financial Ombudsman has today explained the most common problems it hears about regarding services offered by debt management companies.
In its most recent newsletter, the Ombudsman reveals that debt charities are now receiving 4,000 new enquiries a day.
Juliana Francis, senior ombudsman, explained that the complaints received regarding debt management companies, which she calls among the most upsetting cases she hears of, often involved people who had reached the end of their repayment plan only to discover that they had not paid off as much as they had expected to, thanks partly to unclear fee structures.
In some cases, Francis had heard from people who had received court summons regarding debts they believed their debt manager had been handling for them.
The newsletter comes shortly after the Financial Conduct Authority (FCA) published its Financial Advice Market Review, which included a number of recommendations for how financial advice for consumers could be improved.