This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

The Financial Conduct Authority (FCA) publishes a Warning List of firms operating without authorisation, and it is updated regularly. Clone firms, advance-fee fraudsters and unregistered claims management companies continue to target UK borrowers, particularly people who have recently been refused credit or who are dealing with debt.

What the FCA flags as key warning signs

The FCA's published guidance identifies these patterns as common in scam approaches:

  • Unsolicited contact. A firm calls, texts or emails out of nowhere offering a loan or debt solution you did not enquire about.
  • Upfront fees. Pressure to pay a processing fee, insurance charge or administration cost before any money is released. Legitimate FCA-authorised lenders do not ask for upfront fees in this way.
  • Pressure and urgency. A short deadline to accept, or claims that the offer will disappear if you do not act immediately.
  • No credit check described. Phrases that suggest approval with no checks whatsoever. Approval for any regulated credit product always depends on the lender's own affordability and creditworthiness checks, no authorised firm can sidestep that.
  • Request for unusual payment methods. Being asked to pay via bank transfer, gift cards or cryptocurrency rather than standard payment routes.

Claims management companies (CMCs) targeting borrowers are a separate but related concern. Some CMCs contact people claiming they are owed compensation on loans or packaged bank accounts, take an upfront fee or percentage, and then deliver little or nothing.

Why it matters

Loan fee fraud, where victims pay an advance fee and receive nothing, is one of the more common fraud types reported to Action Fraud in the UK. The FCA's ScamSmart campaign and Warning List exist specifically to help consumers check before they hand over money or personal details.

A cloned firm copies the name, branding or FCA registration number of a genuine authorised firm. The FCA register shows the genuine firm, but the fraudsters use similar contact details. Checking the register alone may not be enough; verifying the actual phone number and address against the register entry is the more reliable step.

Who may be affected

  • People who have recently applied for credit and been declined, fraudsters often obtain this data.
  • Anyone who has made a complaint or claim in connection with a financial product in the past, as CMC contact often follows.
  • Borrowers searching for debt help online, where paid ads from unregistered firms can appear prominently.

What to check before engaging with any firm

A useful first step is to search the FCA Register at register.fca.org.uk to confirm the firm is authorised. Cross-checking the phone number and address listed there against the contact details the firm gave you can help identify clone firms.

MoneyHelper's money guidance line (0800 138 7777) can help you think through whether an approach looks legitimate. If a firm is not on the FCA Register and is offering credit or debt advice, reporting it to the FCA's consumer helpline (0800 111 6768) and to Action Fraud (0300 123 2040) is worth considering.

What to read next

For a fuller explanation of how to find and assess legitimate financial guidance, see the Jolly Good Guide to getting financial advice.

Sources

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