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FCA FREEZES BANK ACCOUNTS OF DEBT SOLUTION PROVIDERS

Published on:September 18, 2014Author:The Debt Advisor

The FCA have warned customers of three debt management companies to stop making payments.

Gregson and Brooke Financial Services (trading as Expert Money Solutions), One Tick (trading as Debt Savers Direct and 1-Tick) and the Money Management Service are all unable to pay creditors on behalf of their customers.

The FCA used their powers to freeze the bank accounts of these firms on 29th August 2014 to help protect customer’s money. This means that the firms can no longer make payments to creditors.

The FCA has required these companies to refund any payments made after the 29th August to customers.

It is understood that between 2,000 to 2,500 customers have a debt management plan with the firms which are all based in Bolton.

The firms offered debt management plans and debt reduction plans through the following websites:

  • www.expertmoneysolutions.co.uk
  • www.1-tick.co.uk
  • www.moneymanagementservices.co.uk

What should customers do next?

Existing customers should stop making payments to these firms immediately. If you have a direct debit set up, you should contact you bank to have this cancelled.

Action should be taken so that creditors continue to receive payment. You can either do this directly, or by going with a reputable financial solutions provider.

You may be contacted by other companies offering to transfer you to a new service. You are under no obligation to do this, and you should research any company before agreeing to a new plan.

If you need to speak to these firms, you can contact them on:

  • One Tick (including Debt Savers Direct and 1-Tick): 0333 320 8018. Email: : info@1-tick.co.uk
  • Money Management Service: 0844 801 9772

For further information you can also contact the FCA’s Consumer Helpline on 0800 111 6768 or 0300 500 8082.

The FCA has contacted creditors of affected customers and their relevant trade bodies to explain the situation. The FCA is encouraging creditors to take a sympathetic approach to customers during these times.

There is also free help and advice available through a variety of debt charities. For more information, we recommend you visitwww.moneyadviceservice.org.uk

If you’re struggling with your debts, you should be aware that there are solutions available.

The Debt Advisor can advise on all debts and offer debt solutions such as Debt Management Plans (DMP)Individual Voluntary Arrangements (IVA) and Bankruptcy.

The Debt Advisor Ltd is regulated by The Financial Conduct Authority and are also members of the DRF and we adhere to their codes and standards.

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