Research conducted by the Financial Conduct Authority (FCA) suggests outstanding UK consumer debt is estimated at £12.8-15.2 billion, and fees for debt management plans are estimated to be £25 million a year.
Christopher Woolard, director of policy, risk and research at the FCA, said:
Debt management firms must start putting consumers first.
It's frankly unacceptable that those people who are struggling to make ends meet are being talked into unsuitable plans.
More top news
A cat who prowls a station on the hunt for mice has been promoted to become the official pest control manager.
Jessica Powell's parents described the "heartbreak" of her being treated at mental health units miles from home due to local bed shortages.
A besotted fan of One Show presenter Alex Jones has been barred from making contact with her after bombarding her with love-struck tweets.