Creditfix will longer accept debt packager referrals fees

One of the UK’s largest IVA providers, the business hopes the move will encourage other insolvency practitioners to follow suit in the interest of protecting customers.  

It follows an announcement from the Financial Conduct Authority (FCA) that it’s looking to ban referral fees. In response to this, Creditfix chief executive Paul Mason said: “We welcome the FCA’s announcement to ban referral fees and believe that it’ll go a long way in protecting the most vulnerable seeking support.  

“Whilst we’ve always had stringent safeguarding procedures in place, there’s an added peace of mind that the announcement will play a part in helping to reduce mis-selling – especially during the cost-of-living crisis. 

“However, reform can’t just end here. As the cost-of-living crisis continues to grip the nation’s purse strings and an increased number of people are looking for debt support, we need to be realistic about resources. The not-for-profit sector is an invaluable asset to those struggling but it’s underfunded and under-resourced.  

“The reality of the cost-of-living crisis means people need to be able to get advice on a multichannel basis to suit their lifestyle. That’s where Creditfix can step into the gap and continue to offer support. 

“We’re seeing an influx of enquiries – up 28% on last year – and speak to 3500 people on average every week. The demographic of people struggling with debt is dramatically changing, with previously comfortable families’ finances now on a knife-edge.  

“That’s why we’re committed to being on the front line, providing real-time support and investing in technology and staff to meet consumer demand. 

“Now is the time for the free and commercial sectors to join forces to help guide people through this crisis and we’d welcome any collaboration with organisations who share our vision to provide reliable, timely and most importantly life changing advice to those in need.”