Lenders 'slammed' for debt advice charges
Lenders 'slammed' for debt advice charges
Tuesday 14th October 2008
The most vulnerable of borrowers, who may be considering individual voluntary arrangements or facing bankruptcy, are being charged for debt advice - sometimes up to the value of £100, claims moneysupermarket.com.
Some lenders are taking advantage of vulnerable customers who have made an effort to approach their providers with a view to improving their finances, the price comparison site said.
"The biggest outrage is that so many lenders charge for, or outsource, debt counselling, yet it is free with the Citizens Advice Bureau. Now is not the time to profit from the most vulnerable borrowers," the firm added.
It comes as recent research by independent financial advice website Unbiased.co.uk revealed that Britons are currently £757 million more in debt compared to last year, while savings have fallen by over £4 billion during the same period.
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