Three people have been arrested in the West Midlands as part of a Financial Conduct Authority (FCA) investigation into suspected illicit debt activity.
The regulator said these activities are likely to target vulnerable people facing repossession procedures.
With the help of the National Crime Agency, the FCA searched two residential addresses, an office and a storage space. The individuals were interviewed under caution and released on conditional bail.
The FCA said it could not comment further but would release more details “in due course”.
It added that consumers should be cautious of anyone offering debt help or repayment solutions without FCA approval.
The three suspects cannot be named unless police accuse them of a criminal offence.
Trade organization UK Finance said this last week seizures increased by 4% in the third quarter of the year.