- 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 that a debtor pays under an individual voluntary arrangement arranged by insolvency practitioners (which are not regulated by the FCA).
- Debt advice.
You don’t need to do anything – FSCS will compensate you automatically.
How long will the 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.