Debt management

If you hold money with a debt management company that failed after 1 April 2018, FSCS may be able to pay you compensation.
Your debt management claim would need to meet all of the following criteria:
  • The firm must have failed on or after 1 April 2018.
  • The firm must be authorised by the Financial Conduct Authority (FCA) and hold client money.
  • The firm must have received or held the money through a UK branch in connection with the regulated activities of debt counselling or debt adjusting.
  • The client money reconciliation process must show a shortfall in the amount of client money the firm held for you.
  • The firm (or its principals) must be unable to meet claims for compensation.
  • You must be eligible under FSCS’s rules.
Money a firm holds under a debt management plan may be covered but FSCS does not protect:
  • Money that a debtor pays under an individual voluntary arrangement arranged by insolvency practitioners (which are not regulated by the FCA).
  • Debt advice.

Debt management compensation limits


£50,000 per person per firm.

You don’t need to do anything – FSCS will compensate you automatically.

How long will the debt management claim process take?

We aim to pay claims as soon as possible but the time will vary, depending on the data available from the failed debt management firm and how quickly the insolvency practitioner can reconcile this.