The Financial Services Authority (FSA) has published a new report highlighting the challenges borrowers may face over the coming months.
In particular it focuses on threats that have been created by the downturn in the banking sector and the wider economy.
Entitled the Financial Risk Outlook, it seeks to remind businesses to treat struggling consumers fairly and outlines the need for people to be offered debt help.
The FSA stated that borrowers “will need to be able to identify warning signs that might suggest they are getting into financial difficulty” and advised them to be “cautious of financial deals which seem too good to be true”.
They should also know where they can go for impartial financial advice, it added.
Recently, Citizens Advice called for more help to be offered to the British public after it saw a “sharp” rise in requests for debt advice and enquiries regarding job losses.
By Jamie Price