Finfluencers target the young as promotions breaches continue to rise

Despite increasing its work on financial promotions - leading to the amendment or withdrawal of over 10,000 adverts or campaigns last year - the FCA is concerned about growing numbers of 'finfluencers' who are particularly focused on the young and on the debt market.

By Neasa MacErlean

In areport on its activity in 2023, the Financial Conduct Authority highlighted an increase in the use of TikTok and sponsored advertising "to attract vulnerable consumers to engage in discussions on managing debt". In the typical such case, consumers are then steered towards taking out an Individual Voluntary Arrangement even when this is not suitable. Debt remains a particular concern during the cost-of-living crisis, with the FCA saying it will take "relevant enforcement action in the most sustained and extreme cases". A 2022 trend to target students with offers of credit continued into 2023.