Copycat debt firms ‘tricking’ struggling Brits into paying to fix their finances

STRUGGLING Brits are being “tricked” into paying for debt support by ads on Google. 

An investigation by The Sun has found copycat debt firms, which have similar names to free charities, pay to appear at the top of search engines.

This is the latest instalment in our Consumer Crew's Fix Your Finances series, showing you how we will continue to fight your corner.

Charities continue to urge Google to stop copycat firms from manipulating search engine results that risk luring people seeking free debt support into paying for “unsuitable debt products”. 

It comes a week after the Advertising Standards Authority banned “misleading” Google ads from two debt companies offering individual voluntary arrangements (IVAs) that could leave hard-up Brits worse-off.

People struggling with debt can access free support from charities such as , and .

They can provide free advice on managing your debts and help setup payment plans.

But debt firms which charge to set up IVAs often appear at the top of search engines such as Google and Bing instead.

There are no limits on the cost of arranging an IVA and fees can be on average £5,000, according to Citizens Advice.

Yesterday, a report by the City watchdog declared that the IVA market is broken due to "harmful" fee structures.

The Sun first reported on how debt firms are tricking Brits in 2018 but companies are still getting away with posting adverts that appear to be offering free support.

Debt management companies and advisers can legitimately and legally pay to have their advert displayed at the top of search results for certain terms.

Since November 2019, Google has only allowed firms accredited by the Financial Conduct Authority or licensed insolvency practitioners regulated by a recognised professional to pay for adverts related to debt help.

In both scenarios they also need to have been certified by Google and there are strict rules against misrepresenting services.

Another route could be through changes to insolvency regulations.

The Insolvency Service launched a call for evidence on how the sector is regulated which closed in October 2019 but has not been responded to by the government.

Ms Anderson added: “While the online harms bill could usefully be used to address some of the problems, the drivers of harm also lie more deeply in the structure of commercial incentives operating in the personal insolvency market.”

An Insolvency Service spokesperson said a response was expected in due course.

The spokesman said: “Advertising by insolvency practitioners must comply with regulations and professional codes of practice and we are working closely with regulators to tackle misleading advertising.”

Google removed approximately 2.7billion bad ads in 2019.

A spokesperson for Google said: “We take dishonest business practices and misleading ads very seriously and consider them to be an egregious violation of our policies.

“When ads do not comply with our policies, we are taking immediate action to remove them.” 

A statement from Creditfix, which runs the Your Debt Expert website, said: "Creditfix is looking into the matters raised and has paused the advertisements while this process is underway."

National Debt Help, The UK Debt Expert, Money Advisor Swift Debt Help and National Debt Advice have been asked for comment.

The Financial Conduct Authority has announced that the home repossession ban will continue until April but bailiffs will be able to seize goods and cars.

See how you can apply for a mortgage payment holiday.

A ban on bailiff evictions due to end on January 11 has been pushed back until at least February 21.