West Lancashire residents using a debt management company to help manage or repay outstanding debate could be affected by changes to the sector being carried out by the Financial Conduct Authority (FCA).
The FCA, which regulates debt management companies in the UK, is assessing whether firms that offer debt management plans should be authorised to continue to engage in regulated debt management activities. Firms are being scrutinised carefully, as part of the authorisation process, to ensure that only those that meet the required standards are authorised.
West Lancashire MP Rosie Cooper is highlighting the changes to the FCA authorisation process and the effect on the sector to ensure any West Lancashire residents have access to debt advice to continue to manage their financial situation.
Potentially where a firm is refused authorisation and decides to exit the market or to stop providing debt management services to its customers, some members of the public could lose access to their debt management plan at short notice, leaving payments outstanding to creditors.
MP Rosie said:
“It is important that West Lancashire residents who use a debt management company are aware of these changes and take the necessary action if their company stops providing your debt management plan.
“If your debt management company is no longer able to provide your plan, you will be contacted by letter with information from the Money Advice Service on the help available to you, and to make sure you can access free, confidential debt advice about what to do next.”
If you would like to find out more, please visit the Money Advice Service website
Or call the call Money Advice Service’s dedicated confidential debt management helpline on 0300 330 2222*
*Calls cost no more than to a standard UK-wide number