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New FCA Rules See Debt Management Companies Dissolve

By: Issuewire

London, Nov 23, 2018 (Issuewire.com) - In 2017 the FCA (Financial Conduct Authority) began a review of the practices of all companies in the debt management sector, this was a review designed to curtail unethical practices and to ensure good standards of service moving forward, this review is ongoing.

During last years' review procedures 'letters to the CEO' were sent to the various companies' letting them know what was expected of them in terms of fair practice that doesn't hurt the consumer, as part of the measures to protect the British Consumer.

Since these expectations were sent in the form of a letter many debt management companies have decided to leave the market and stop trading as a company, whilst the companies' that have remained are having to meet more stringent criteria to prove to the regulators their commitment to high levels of service and consumer commitments to high standards of service.

Another commitment British debt management and IVA companies' have had to make recently are to abide by more stringent data protection laws and regulations known as 'GDPR' (General Data Protection Regulations) which restrict how information can be stored and is designed to protect privacy and regulate the handling of personal consumer information.

In addition to the issue of companies dissolving due to more stringent regulation, some rogue debt management firms have also been banned from operating in the finance sector, one particular case of this that received public attention recently was the banning of 'First Step Finance Limited' after the people running it was accused of 'misappropriating client funds; with client money being spent on holidays, restaurants and other personal expenses.

Increasingly UK residents seek out ethical 'debt help' firms that follow the FCA regulations, whilst the FCA works to clear the market of companies that don't play by the rules.

These FCA reviews are carried out for a range of different financial sectors, including PPI claims, bad credit loans, and pension release amongst others.

One new company that has entered the IVA (Debt Help) sector is DebtSolve.UK (Source: http://www.debtsolve.uk, a company based in Manchester, UK, who feature an extensive guide on how long creditors can chase debts (source: http://www.debtsolve.uk/creditor-issues/how-long-can-my-creditors-chase-me-for-debts/) which has details to commonly asked questions for consumers.

The FCA review (ongoing) is expected to continue on until the end of Q1 2019 after which it will be completed with further rules expected to come into effect.

About Company: Debtsolve.UK is a debt management and IVA company specialising in people who are suffering from debts and struggling to repay them.

Media Contact

James Thomson

admin@debtsolve.uk

London, UK

http://www.debtsolve.uk/

Source :DebtSolve

PDF Version : issuewire.com/pdf/2018/11/new-fca-rules-see-debt-management-companies-dissolve-IssueWire.pdf

This article was originally published by IssueWire. Read the original article here.

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