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FCA warns debt management firms


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The Financial Conduct Authority (FCA) has issued a conduct warning to debt management firms ahead of assessments for consumer credit authorisation beginning in October.

 

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The Financial Conduct Authority (FCA) has issued a conduct warning to debt management firms ahead of assessments for consumer credit authorisation beginning in October.

 

The regulator has said firms providing debt management services “must demonstrate they provide appropriate advice, do not charge unfair fees, and have adequate processes for handling client money”.

 

Since taking on the mantle of regulator at the start of April, the FCA has conduct firm visits and found instances of debt management firms not adhering to consumer credit rules brought in to provide additional protection for consumers.

 

It has also warned that the new authorisation process will be “more rigorous” than the licensing regime under the previous regulator, The Office of Fair Trading (OFT).

 

 

 

Edited by citizenB
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