Concerns over unregulated debt companies

THE Department of Finance and the Financial Regulator have expressed concern over unregulated private debt management firms, some of which are claiming to be “government-backed schemes”, in order to draw people in.

An analysis of the companies by the Irish Examiner shows there are dozens such firms advertised online — some of which are operating aggressively, saying they are government schemes. However, unlike the state Money Advice and Budgeting Service (MABS) service, which is free, these firms charge hundreds of euros to consolidate and manage personal debt.

Spokespersons for the Department of Finance and the Financial Regulator said it was very concerning that some of the companies were using the line “government-backed scheme” in their advertising.