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Citizens Advice said people who were struggling financially were being targeted by firms who contacted them out of the blue offering to help them find a loan.
Victims were charged hefty up-front fees for the service, but the loan often failed to materialise and they were unable to get their money back.
In many cases, people were persuaded to hand over their bank account details and found that money had been withdrawn from their account without their consent.
Their contact details were then often passed on to other companies, which bombarded them with texts and calls offering them loans, debt management or claims management services, with some people receiving up to 12 calls a day.
These groups also charged people up-front fees, often of several hundred pounds, but like the credit brokers, they failed to provide a service.
The charity said cold calling by credit brokers tended to target people who were unable to borrow money from mainstream lenders because they had a poor credit history, were on a low income or were experiencing financial difficulties.
It has lodged a super complaint with the Office of Fair Trading, calling on it to ban firms offering credit or debt management services to cold-call customers and to stop companies charging up-front fees.
Gillian Guy, chief executive of Citizens Advice (England & Wales), said: "Our evidence suggests that rogue operators are cashing in on the desperation of people hit hard by the recession who are least able to afford it, and that this problem is set to grow much worse."
"The framework of consumer protection about unsolicited marketing and up-front fees charged by credit brokers is not only complex, but loopholes give too much room for bad practice to flourish."
Group targets rogue cold-callers - Yahoo! News UK
Victims were charged hefty up-front fees for the service, but the loan often failed to materialise and they were unable to get their money back.
In many cases, people were persuaded to hand over their bank account details and found that money had been withdrawn from their account without their consent.
Their contact details were then often passed on to other companies, which bombarded them with texts and calls offering them loans, debt management or claims management services, with some people receiving up to 12 calls a day.
These groups also charged people up-front fees, often of several hundred pounds, but like the credit brokers, they failed to provide a service.
The charity said cold calling by credit brokers tended to target people who were unable to borrow money from mainstream lenders because they had a poor credit history, were on a low income or were experiencing financial difficulties.
It has lodged a super complaint with the Office of Fair Trading, calling on it to ban firms offering credit or debt management services to cold-call customers and to stop companies charging up-front fees.
Gillian Guy, chief executive of Citizens Advice (England & Wales), said: "Our evidence suggests that rogue operators are cashing in on the desperation of people hit hard by the recession who are least able to afford it, and that this problem is set to grow much worse."
"The framework of consumer protection about unsolicited marketing and up-front fees charged by credit brokers is not only complex, but loopholes give too much room for bad practice to flourish."
Group targets rogue cold-callers - Yahoo! News UK
