Blu Debt Management has reported a noticeable increase in the number of mortgage brokers seeking debt management help for clients who had been involved in challenging the terms of their credit agreements.

Many borrowers paid upfront fees to firms offering to clear them of their unsecured debt, but most have been saddled with a larger debt as their attempts failed.

Blu Debt Management claims clients have been left worse off, not only because of fees, but also because, in many cases, they were advised to stop making their monthly payments during the process of trying to get their agreements cancelled.

Also, many advisers also diversified since the credit crunch and entered the unenforceable credit agreement (UCA) business in good faith, only to discover that the firms they dealt with weren’t reputable and their clients are now worse off. Many of those mortgage brokers are now also turning to debt management to rebuild the trust of their clients, to help repair their damaged finances, and to find a new income stream for themselves.

James Briggs, sales director at Blu, said: “Over the past couple of years numerous advisers have diversified and entered the unenforceable credit agreement (UCA) market in good faith however