FCA Letter to Debt Management Firms
On the 8th December 2016 the FCA published a ‘Dear CEO’ letter to debt management firms identifying concerns in respect of annual reviews for debt management customers and reminding debt management firms of their responsibilities in respect of such reviews.
These letters were triggered because the FCA had observed various problems in the market, including failures by firms to review debt management plans (“DMPs”) at least annually and poor maintenance of customer contact. The FCA also notes that some debt management firms are unduly delaying termination of their involvement in administering DMPs and delaying the transfer of client money to customers after cessation of DMPs.
The letter can be viewed here.