‘Check it Trust it' campaign backed by Just Credit Union

The ‘Check it Trust it’ campaign focuses on a checklist created by StepChange, a charity focused on providing free impartial debt advice in partnership with National DebtLine and Citizens Advice which also provide quality free impartial advice.

“We are wholly supportive of this campaign because it is more and more essential that people struggling with problem debt receive free and impartial advice,” Steve Barras, Development Officer at Just Credit Union.

“This is particularly so before they take up any debt solution because some of these solutions are not necessarily right for everyone and come with significant long-term consequences which are often not fully explained.”

Mr Barras, who represents the Shropshire and Telford & Wrekin’s not-for-profit savings and loans co-operative, added: “There are some companies who heavily promote one way to deal with debt often focused on selling solutions like Individual Voluntary Arrangements (IVAs) because they can make money from them.

“This, however, is not the right debt solution for everyone and comes with significant long-term consequences which are often not fully explained.”

He added: “We have probably all seen advertisements offering to ‘write off up to 90 per cent of your debt’ or targeted at specific demographics such as ‘help for women in debt’.

“These tend to be run by lead generator companies who collect personal details and sell them to commercial companies for a fee.

“These firms then make their money by charging fees for the debt solution which may not be appropriate for the individual.

“Some companies also impersonate reputable debt advise providers by using similar names like ‘Step to Change’ or ‘Step Changing’.

“For people to protect themselves from falling victim to a misleading debt advert Just Credit Union recommends using a simple checklist.”

He outlined the four steps of the check list – Check they are approved, what they say, check it is honest and check your details are safe.

He advised that people should search online for the ‘FCA register’ and check they are on it to make sure they are checking the right name. If they are, to read the small print. Some companies are on the register, but when you read the ‘what can this firm do in the UK’ section, they have ‘limits’ on giving ‘debt counselling’.

“Local councils are not on the register, but they provide trustworthy advice.

"And watch out for companies saying things that are too good to be true, like ‘Government-backed easy and quick debt write-off’ which could be a warning.“Good debt advice does not promote a single way of dealing with debt, like selling IVAs - it will explain several options and give choices.

“Make sure you are dealing with who you think you are. Check their website address, their logo and their contact details.“Some companies take personal details and use them for fraudulent purposes. Ask the company what details they want, who they are sharing it with, and how they are keeping your details safe.

“You can also ask for their ‘privacy notice’ which offers information about how they will use your details.”

Steve added: “Following these simple steps can keep you save and make sure you get the right advice. People can easily find a source of good quality advice which can be accessed in a way that suits the individual best."