The firms uncovered by the regulator say they can write off debts but often charge fees to do so, even when the scheme fails.
These firms are offering to 'write off' debts, mainly mortgages, and get compensation for consumers from their lenders. This might include reclaiming past payments of capital and interest.
The firms often charge a fee to do this and might add more fees even when the scheme fails, which can lead to significant losses for those involved.
The FCA says these firms might try to convince individuals by pointing to ideas such as 'Strawman', 'Freeman of the Land' and 'Sovereign Citizen'. These ideas promote the belief that the government and laws of a country have no powers over people.
Fraudsters use these ideas to appeal to people facing financial difficulties who may be looking for a way out of their debt.
Almost all firms and individuals offering, promoting or selling claims management services in the UK must be authorised or registered by the FCA.
