The Financial Conduct Authority (FCA) is warning people not to be tricked by callous criminals looking to prey on financially vulnerable households seeking loans as the cost of living crisis continues to surge. The city regulator has reported receiving a growing number of calls about loan-fee fraud - when people pay fees up front for loans that they never receive.
Instead of getting the loan they were hoping for, those struggling with their finances end up even worse off - losing on average £280 to the scam. Victims tend to be aged 25 to 45, are slightly more likely to be male (60%) than female (40%) and often work in manual occupations or are unemployed, according to the FCA.
Energy bills are undoubtedly putting the most pressure on household finances and are expected to increase to an eye-watering £3,600 this winter. This is forcing many people to take drastic action now to keep on top of other outgoing costs before the Ofgem price cap comes into effect on October 1.
