Exclusive: IFAs fear compensation bill for bust debtDr referrals

Laura Miller
clock

IFAs who referred clients to advisory service debtDr fear they could be targeted for compensation after the firm went bust last night with no details available about the whereabouts of client money.

debtDr, which had about 60 debt consultants nationwide as well as a network of adviser introducers, charged clients to negotiate more manageable terms for their debts. Clients would then transfer full and final settlement money to the service, which it agreed to keep in separate client accounts to pay out to creditors. Some advisers and mortgage brokers, who had seen work dry up since the property crash, had opened up a side business in referring bankruptcy cases to the Somerset-based service in exchange for commission. Jeremy Hockley, the firm's chief executive, had also appeared ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA continues data reporting cuts

FCA continues data reporting cuts

Regulator removes more data returns

Isabel Baxter
clock 28 August 2025 • 1 min read
Regulatory and employment-related changes – what do firms need to prepare for?

Regulatory and employment-related changes – what do firms need to prepare for?

‘Getting these issues right is not just about avoiding regulatory action or tribunal claims’

Sophie White
clock 21 August 2025 • 4 min read
FOS fees could fall if cases resolved early

FOS fees could fall if cases resolved early

Consultation seeking to modernise charges

Jenna Brown
clock 13 August 2025 • 2 min read