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The Credit Services Association (CSA)
Note from the FCA: Debts Reduced Limited and Linked Finance Limited
Note from the FCA:
On 11 July 2014, Debts Reduced Limited (DRL) and Linked Finance Limited (LFL) applied to the FCA and requested that the FCA vary their interim permission to impose restrictions on their bank accounts. The FCA agreed to the requests and the restrictions became effective on that day with immediate effect, meaning they will no longer be providing debt management services to new or existing clients. This voluntary requirement is displayed on the FCA’s interim permission register for consumer credit register.
Both firms have approximately 800 clients and use the following trading names:
- LFL (Key Finance, Linked Introducers & www.linkedintroducers.co.uk)
- DRL (www.debts-reduced.co.uk)
To ensure continuity for its clients we understand DRL’s and LFL’s are in discussions with another Debt Management Firm over the transfer of clients. As the transfer of clients will take time to complete we would encourage (and indeed
expect, consistent with our rules1) FCA authorised creditors, and those acting on their behalf, to show due consideration towards DRL’s and LFL’s clients and exercise forbearance and restraint during this period.
We have contacted the Money Advice Service and a number of the charitable bodies that provide free to the customer debt advice and/or their representatives to make them aware of the situation. If FCA authorised firms become aware of non-FCA authorised firms that aren’t exercising similar forbearance towards DRL and LFL clients (for example, a debt collection firm that only collects debts arising from utility bills) we would be grateful if you could make us aware in order that we might, if appropriate, take steps with a view to intervening (by, for example, passing on the information to the appropriate utility regulator).
Debt management firms are amongst the first that we will be assessing (from 1 October 2014) as to their fitness to be fully authorised by the FCA. It is reasonable to anticipate that some other debt management firms may exit the sector prior to 1 October. If this is the case, we would expect FCA authorised firms to exercise similar restraint towards the clients of any such firms.
We would be grateful if you could cascade this message to your members (as appropriate) at your earliest convenience.