Debt management firms blur boundary between advice and sales, finds FCA report

The report, put together by research agency ESRO in November and December 2013, formed part of the FCA's Consumer Credit Research Programme ahead of its takeover of the regulation of consumer credit in April this year. It looked at consumers' experiences with debt management services, both fee‑charging and non‑fee‑charging, as well as payday loans and logbook loans. It found consumers were faced with a general lack of distinction between financial advice and sales, and often wrongly believed they were receiving impartial advice when speaking to DMCs. The report read: "During the sa...