How to spot a debt company or advert to avoid
Be wary of any debt advert or firm that promises a set amount of debt written off, calls itself a government scheme, describes an IVA as free or quick, or pushes you to sign before you have read everything. You can check who you are dealing with on the FCA register and gov.uk before you share any details.
Debt adverts are everywhere, at the top of search results and in social media feeds, and many are placed by firms that make money when you sign up to something. A genuine firm will tell you who it is, how it is paid, what the risks and fees are, and what your other options are. If an advert or caller will not do that, walk away.
We do not name or rate firms, and this page is not an accusation against any company. It sets out the warning signs regulators have published, so you can apply them to anyone, including us. IVA Helpline does not set up IVAs: if you use our checker, we may pass your details to a licensed insolvency practitioner or debt adviser.
What are the warning signs in a debt advert?
| What you see | Why it is a red flag |
|---|---|
| A headline promise to write off a big percentage of your debt | The Advertising Standards Authority (ASA) has ruled “up to” write-off claims misleading where the advertiser could not prove its own customers achieved them. What is written off depends on what you can pay and what creditors accept. |
| “Government backed”, “government scheme”, “new government initiative” | Ads must not imply government approval. The FCA warns about ads calling IVAs a “government backed solution”. |
| A name, logo or web address that looks official or like a debt charity | The ASA has ruled that “Gov” in web addresses implied a government link. The FCA warns that some firms impersonate debt charities. |
| “Free debt help” that leads straight to an IVA | An IVA always carries fees. Only an initial enquiry can fairly be called free. |
| “Quick”, “easy”, “anyone can apply”, “60-second check” | Regulators treat claims like these as misleading. An IVA lasts 5 or 6 years and does not suit many people. |
| No clear statement that the firm passes your details on | Firms that pass your details to others must say so clearly and prominently, and disclose any financial interest. |
These points come from ASA rulings and its 2022 enforcement notice on debt adverts, the Insolvency Service’s 2021 guidance on advertising, and the FCA’s consumer warning on unauthorised or unsuitable debt advice. Citizens Advice found in 2023 that 17% of the IVA ads it analysed referred to government legislation or regulation.
Why are “debt write-off” and “government scheme” claims red flags?
People often search for a “government debt write-off scheme”. There is no such scheme to sign up to.
What the law does provide is a set of formal debt solutions. An IVA is a legally binding agreement under the Insolvency Act 1986, set up and run by a private, licensed insolvency practitioner who charges fees. A debt relief order is free and you apply through an approved debt adviser, after which the Insolvency Service confirms whether it has been made. Bankruptcy costs £680 and you apply online yourself. You do not need a company to get you into any of them, and none of them is a scheme that a firm can offer on the government’s behalf.
“Write off” claims are a problem for a different reason. In an IVA, any debt still unpaid at the end is written off only if you complete it. How much that is depends on what you can afford and what your creditors accept, and it is not guaranteed. If the IVA fails, you owe the balance again, with frozen interest and charges added back. Our guide to writing off debt explains the real routes.
What are the warning signs when you speak to a firm?
- Pressure to sign on the first call, or before you have read the key facts document and the proposal.
- Being coached. The FCA says you should never be coached into giving certain answers, such as misstating your income or spending, to qualify for an IVA.
- Being told to leave out a debt, an asset or some income. That can make the IVA fail later, and giving false information to get an IVA approved is a criminal offence.
- Only an IVA is discussed. The IVA Protocol says the nominee should explain all the options available to you.
- The firm will not tell you the name of the insolvency practitioner who would run your IVA.
- A request for money upfront. For protocol IVAs, fees are included in your monthly payments.
- An unexpected call, text or message about debt help from a firm you have never contacted. Do not give details. If you want help, contact a firm yourself using details you have checked.
How do you check a firm on the FCA register?
Any firm that gives you debt advice needs FCA authorisation, unless it is an insolvency practitioner acting as such.
- Ask the firm for its full legal name and its FCA firm reference number.
- Search the Financial Services Register and check that the name, trading names and web address match.
- Check its permissions. A firm advising you on debts should have permission for debt counselling.
- Contact the firm using the details on the register, not the ones in the message you received. The FCA warns that fraudsters sometimes pretend to work for genuine firms, known as clone firms, and keeps a Warning List of unauthorised firms.
How do you check an insolvency practitioner?
Only a licensed insolvency practitioner can propose and run an IVA, and it must be a named person, not just a company.
- Ask for the practitioner’s full name and IP number.
- Ask which body licenses them. There are three: the Insolvency Practitioners Association (IPA), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS). The FCA and R3 do not license insolvency practitioners.
- Search gov.uk’s Find an insolvency practitioner directory. It is not a complete list, so if the name is not there, ask the licensing body to confirm.
More detail is in what an insolvency practitioner is and how to choose an IVA provider.
Want to know whether an IVA could work for you? Answer a few questions about your debts and income. It takes about 3 minutes, and it is free and confidential.
Who gets paid when you are referred to an IVA firm?
It helps to know how the money moves, because it explains why some adverts push IVAs.
- Lead generators collect enquiries and pass them on. They can be paid, but FCA rules say they must disclose any financial interest, must not claim to be a charity, not-for-profit or government body, and must not give debt advice unless they are authorised to.
- Debt packagers are FCA-authorised firms that advise you and then refer you on. Since 2 October 2023 they cannot receive any payment from the debt solution provider for the referral.
- Insolvency practitioners are responsible for making sure advertising that leads to their appointments is fair and not misleading, including adverts placed by the firms that introduce people to them.
- Under the IVA Protocol, the nominee must record who referred you in your proposal, and must make sure any referrer is FCA authorised for debt counselling or send you to someone who is.
Fees for an IVA come out of your monthly payments. See how much an IVA costs.
What if you think you have been misled?
Complain to the firm first, in writing. If it is FCA authorised and does not resolve things, you can go to the Financial Ombudsman Service. Complaints about an insolvency practitioner go through the Insolvency Service’s Complaints Gateway. Misleading adverts can be reported to the ASA. Our guide to complaints about an IVA sets out each route and its time limits.
What to do next
- Before you contact any firm from an advert, speak to a free, impartial adviser at MoneyHelper, StepChange, Citizens Advice or National Debtline. They have nothing to sell you. See where to get free debt advice.
- Compare every option, not just an IVA, in debt solutions compared.
- If you speak to an IVA firm, check the practitioner and any referrer using the steps above, and keep a note of who you spoke to.
- Read the IVA myths you are likely to hear, or go back to IVAs explained.
Common questions
Is there a government debt write-off scheme?
No. The law provides formal debt solutions such as IVAs, debt relief orders and bankruptcy, but there is no government scheme that a company can sign you up to. An IVA is run by a private, licensed insolvency practitioner, not by the government.
Which IVA companies should I avoid?
We do not name or rate firms. Use the checks on this page on any firm: who the insolvency practitioner is and who licenses them, whether any adviser or referrer is FCA authorised, and whether the firm says plainly how it is paid.
I have already given my details to a firm like this. What now?
Giving your details does not commit you to anything. Do not sign until you have checked the firm and read the key facts document, and get a free second opinion from a debt advice charity first.
Can I report a misleading debt advert?
Yes. You can complain to the Advertising Standards Authority about ads, including website claims, paid search listings and sponsored social media posts. You can report a firm giving debt advice without authorisation to the FCA.
Related guides
- How to choose an IVA provider How to check an insolvency practitioner and any referrer, the red flags to watch for, and what to ask.
- How to complain about your IVA or change provider Who to complain to about an IVA, the time limits, what each route can do, and how a supervisor can be changed.
- How to write off debt in the UK The real routes to having debt written off, what each costs, and how to spot misleading adverts.
- IVA myths and the facts Common claims about IVAs, from write-offs to homes to credit files, and what is actually true.