Debt management companies target Quidco cashback customers Which?
Which? Money has found that debt management companies are using cashback website Quidco to target consumers struggling with debt, which may encourage them to apply for fee-charging debt solutions.
In exchange for a cash reward of £15-£25, consumers could end up paying thousands of pounds in fees for a product they could get for free elsewhere. Taking out a debt solution with Money Advice Group through Quidco could earn you £25 in cashback. However, there is no mention on Quidco’s site about the fees you would have to pay under a Money Advice Group debt management plan (DMP).
It will keep all of your first month’s repayment and then all but £1 per creditor in your second month. The company then charges a monthly fee of 17.625% of your repayment, with a minimum of £37.50. A debtor with six creditors who can afford to repay £200 a month would pay the company £769 in fees in the first year alone.
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