23 May 2008
Debt advice services in some cases rip off people with major money worries, it has been claimed by an Assembly Member.
Welsh Liberal Democrat spokesman for Social Justice Peter Black stated that companies that operate over the internet and telephone are the worst offenders, reports the Swansea Evening Post.
Large interest rates are charged by such organisations, he noted, as they are based in offshore locations.
"The best advice to people struggling with debt is not to go with someone who cold-calls you on the phone, or advertises over the internet who seem too good to be true. They probably are," he commented.
He added that personal debt, possibly created via loans, is a big problem in Wales and that real help is needed for those with problems. Good quality advice channels are there for those who need it, he observed, such as the Citizens Advice Bureau.
National Debtline said this week that payday loans are symptomatic of a larger problem in the country.