Why did my debt management plan stop?
In order to ensure that you’re treated fairly, all debt management providers -including ourselves - have had to apply to the FCA for “authorisation”. Since then, all providers have been operating with “interim permission” until full authorisation is gained.
Earlier this year, some firms were told by the FCA that their application for full authorisation was likely to be refused. For example:
- The company failed to demonstrate that it had the appropriate system and controls in place
- People were being advised to enter debt solutions that were unsuitable
If the FCA refuses to approve a debt management company’s application, then that company is no longer allowed to trade. Their clients will need to consider other options to deal with their debt.
I've lost money because my debt management firm closed down - will I receive compensation?
We wouldn't be able to help you with this, unfortunately. If the debt management company you're currently with is going into administration, the FCA should be able to put you in touch with the administrators overseeing the process. Please contact the FCA consumer helpline on 0800 111 6768 (Freephone) or 0300 500 8082 (charged at a local rate for mobile phone users), and press ‘2’.
Why can’t I just switch my debt solution over to StepChange Debt Charity?
When we advise you, we do a full review of your circumstances, and recommend the best solution for your debt problem. We do this because we consider all aspects of your budget to be important. Only by taking everything you're dealing with into account can we assure you're getting the best help and advice possible for your debts.