The collapse of debt management firm debtDr just before Easter was a huge blow for its users but also advisers who recommended the firm to clients.
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. However, following an e-mail saying debtDr had ceased trading, advisers were unable to uncover any details about the whereabouts of client money or reassurances their outstanding commission would be paid. Now, debt regulator the Office of Fair Trading (OFT) has warne...
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