Copycat debt firms posing as charities still appearing at top of Google searches
GOOGLE is still allowing debt agencies with similar names to free charities to pay for adverts to appear at the top of search results for help sorting out your finances.
The warning comes on Blue Monday, statistically the most depressing day of the year, and when people are likely to be searching online for post-Christmas debt help.
Free debt help is available from charities, such as the Money Advice Trust which runs National Debtline, but vulnerable people could be fooled into paying thousands more for a service by unknowingly clicking through a Google advert.
Firms can bid against each other to have their advert displayed at the top of the page when a certain term is typed into the search bar on Google, such as "debt" or "debt help".
Since mid-November, a rule change by Google means that only firms accredited by the Financial Conducted Authority or licensed insolvency practitioners regulated by a recognised professional body can pay for the adverts.
In both scenarios they also need to have been certified by Google.
TIPS FOR SEARCHING FOR DEBT ADVICE ONLINE
HERE are some tips from National Debtline on how you can protect yourself when looking for debt help.
- Be careful - Some firms are not what they seem and use adverts that make it sound like they're free debt advice charities when they are not.
- Know where the ads are - Search engines such as Google often have paid adverts at the top of the page. Before clicking a link, check if it is an ad or not as they can be difficult to spot.
- If it looks too good to be true, it probably is - If a link promises that it will wipe all your debt away easily, then it's probably not one you want to get help from.
- Only use official organisations - If you need help, only go to charities such as National Debtline, StepChange and Citizens' Advice to begin with.
But the problem is that despite being regulated and acting within the law, many of these firms make money from setting up debt plans or they're brokers that take a cut of any debt solutions packages sold on behalf of finance firms.
Confusingly for consumers, some of these companies have names and URLs that can easily be mistaken with charities offering free debt advice.
For example, National Debt Solutions and National Debt Service both appear at the top of Google when you search for "debt help".
But they both sound similar to National Debtline and instead link desperate borrowers with firms that sell Individual Voluntary Agreements (IVA) and Debt Management Plans (DMP).
Although both offer free initial advice, it's likely they'll charge you later down the line for setting up a plan.
The Sun has asked both companies for their fees, if any, and we'll update this story if we get a response.
Charity StepChange says a standard debt management plan from a fee-charging company can cost people an extra £4,000.
Similarly, company Money Advice Expert, which also appears under searches for "debt help", can easily be mistaken for the government's Money Advice Service.
Again, it's unclear what fees it charges, if any, but this highlights the need for consumers to be wary before signing up to the first debt plan they find.
Debt campaigner Sara Williams from , warns that those struggling with debt might not be receiving the impartial advice they need if they click through the adverts.
She explained: "These firms make all their money from convincing you that an IVA is your best option.
How to get help for free
THERE are lots of charities that can help you with your problem debts, such as the following:
- Citizens Advice - 0808 800 9060
- National Debtline - 0808 808 4000
- StepChange - 0800 138 1111
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) on the and on the government's
Speak to one of these organisations - don't be tempted to use a firm that will claim it can write-off lots of your debts in return for a large up-front fee.
"More than 25 per cent of IVAs are failing at the moment, often because people have been mis-sold an IVA when there was a better - cheaper, quicker, simpler - solution for their large problem debts that was never properly explained to them."
The paid-for links are flagged with an "ad" icon next to them but experts believe the ads are still putting struggling households at risk.
Martyn James from complaints website, Resolver, believes Google should either be fined or forced to compensate those who've been tricked as a result of the adverts.
He told The Sun: "For one of the biggest and richest businesses on the planet to still be allowing fraudsters and rip off debt companies to use misleading adverts on its site is totally unacceptable."
Google told The Sun that all three companies we highlighted have fulfilled its rules to be displayed.
Craig Simmons, from the Money and Pensions Service, which is run by the Money Advice Service, called the adverts "a concern".
He said: "We are looking into this issue. The last thing people with money worries need is any confusion about where they can go for free help from experts."
StepChange, which has campaigned to get these confusing ads banned ever since a The Sun investigation revealed the problem back in January 2018, has called it "worrying" that these firms are still able to act this way.
Sue Anderson from the charity said: "We’re continuing to work urgently with a range of organisations to try to get these misleading and damaging practices to stop."
Most read in money
A spokesperson for Google added: “We take dishonest business practices very seriously and consider them to be an egregious violation of our policies.
"If we find ads that violate our policies, we remove them immediately. We also have a tool where anyone can and these complaints are reviewed by our team."
The Sun has contacted National Debt Solutions, National Debt Service, and Money Advice Expert.