“Write off debts” scams targeting consumers
Fraudsters target those in financial difficulty
The Financial Conduct Authority has said it believes there are firms offering unauthorised claims management services to people in the UK.
These firms offer - often for a fee (and even when the scheme fails) - to “write off” debts such as mortgages, and get compensation for consumers from their lenders. This may include reclaiming past payments of capital and interest.
As part of this, the firms may try and convince individuals by pointing to ideas such as “Strawman”, “Freeman of the Land” and “Sovereign Citizen” - all of which promote the belief the government and laws of a country have no powers over people.
In times of economic hardship, fraudsters use these ideas to appeal to people facing financial difficulties who may be looking for a way out of their debt, the FCA warned and told individuals to be cautious of any firms offering to write-off debt.
Almost all firms and individuals offering, promoting or selling claims management services in the UK must be authorised or registered by the FCA, with the companies offering the services highlighted above are unlikely to be authorised and are targeting people in the UK.
