Another batch of debt management companies bite the dust as the FCA impose their authority and urge customers to stop making payments.
Not 24 hours after reporting requirements imposed on Bournes Debt Solutions by the FCA, the regulator, today (18 September 2014) announced that customers of three debt management firms should stop making payments to the firms.
The companies concerned are Gregson and Brooke Financial Services (Expert Money Solutions), One Tick (Debt Savers Direct) and Money Management Service.
These three firms are no longer able to pay creditors on behalf of their customers. The FCA states that:
We used our powers to freeze the bank accounts of each of these firms on 29 August 2014 to help protect customers’ money. Following this action, the firms cannot make payments, which means they will not be making further payments to the creditors of their customers.
FCA is currently working with the firms to ensure all payments received on or after 29 August 2014 are refunded.
Debt management customers affected
It is understood that between 2,000 and 2,500 debt management customers will be affected. The firms will be contacting customers to explain the situation, but it is advisable for customers to:
- Stop making payments to the firms immediately
- Cancel any standing orders or direct debits to these firms
The FCA have contacted the creditors and their relevant trade bodies to explain what has happened and encouraged them to take a sympathetic view of the customers.
ClearDebt understands that all of these companies were not operating an orthodox debt management model but were purporting to negotiate full and final settlements for their clients.
Debt help for customers
Through our sister company Abacus, we may be able to help customers of Gregson and Brooke Financial Services (Expert Money Solutions), One Tick (Debt Savers Direct) and Money Management Service support in these uncertain times.
We will always signpost you to free debt advice and solutions through the Money Advice Service and offer Debt Management Plans to customers. Where appropriate, customers may also consider looking at an IVA if they have a debt management plan that still has five years or more to run.
Need debt help?
If you have been affected and are uncertain how to proceed with handling your debts, speak to one of our advisors today on 0800 019 2095 or chat to us online with live chat.
