Debt management customers of 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 should stop making payments to these firms, the Financial Conduct Authority has warned.
The regulator announced today (18 September) that the three firms are unable to pay creditors on behalf of customers and it used powers to freeze the bank accounts of each of them on 29 August to help protect customers’ money.
The FCA is now working with the firms to ensure that payments received on or after the end of August will be refunded, but it confirmed that payments to Gregson and Brooke Financial Services, One Tick, the Money Management Service, and their various trading names, will not reach creditors.
“We understand that between 2,000 and 2,500 customers have a debt management or debt reduction plan with one of the firms, which are all based in Bolton,” the FCA stated.
It advised that debt management and debt reduction customers of these firms should stop making payments immediately and if anyone has a standing order or direct debit they should contact their bank or building society to cancel future payments to the firms.
The FCA has asked the three firms to contact all customers to explain what has happened and what it means for their debt management or debt reduction plan.
