Fairpoint Group PLC based in Chorley has announced that they intend to wind down their Debt Management operations during the latter part of 2016. In a press release issued today by Fairpoint, they cite regulatory changes in the industry as being the driving factor in the decision. Fairpoint add that the regulatory changes imposed by the Financial Conduct Authority has severely impacted the commerciality of the industry and rendered the commercial DMP sector unsustainable.
Chris Moat, Chief Executive of Fairpoint said: “By simplifying the business by exiting the DMP segment we will be better placed to focus our resources on making continued progress in Legal Services which offers more attractive growth opportunities. We therefore believe the long term gain of being a focused business will outweigh any short term negative impact from our decision.”
Fairpoint has revealed that their current client base will be referred to the free-to-client sector. At this point it is uncertain if the free sector is equipped to deal with such a large influx of clients from Fairpoint and other DMP providers who have shut their doors in recent times.
Bev Budsworth, Managing Director of The Debt Advisor comments: “It is sad to see yet another firm exit the commercial debt management sector. The past 18 months have been very tough for the debt solutions industry. The Financial Conduct Authority warned in September 2014 that debt management companies needed to “raise their game”. Companies such as Fairpoint who operate debt management brands, Lawrence Charlton and ClearStart have worked very hard to get themselves FCA ready. The significant additional compliance burden and associated costs have been a prominent reason for many commercial debt management companies exiting the market”.
The Debt Advisor Ltd is a long established company based on Old Trafford offering advice on all debt solutions. Bev Budsworth is a licensed Insolvency practitioner regulated by the Insolvency Practitioners Association. The company is also authorised and regulated by The Financial Conduct Authority No 606669 in relation to advice and debt management activities.
If you are struggling with debt, please give our team a call on 0800 0851 825 or use our contact form. Our advisors can speak with you about all available debt solutions such as Debt Management, IVAs, Bankruptcy and Debt Consolidation.
All debt solutions need to be considered carefully. If you are struggling with debt we recommend that you seek advice from FCA regulated debt solutions practices.
There is also free debt help and advice available through a variety of debt charities. For more information, we recommend you visit www.moneyadviceservice.org.uk.