If you’ve got money in a debt management plan run by a specialist debt management firm that’s failed, we may be able to pay you compensation.
If the firm failed after 1 April 2019
If you hold money with a debt management firm that fails, we may be able to compensate you:
- up to £85,000 per eligible person, per firm.
You don’t need to do anything – FSCS will compensate you automatically.
If it failed between 1 April 2018 and 31 March 2019
- up to £50,000 per eligible person, per firm.
Your claim would need to meet all the following criteria:
- The firm must have failed on or after 1 April 2018.
- The firm must have been authorised by the Financial Conduct Authority (FCA). You can check on the FCA's website.
- The firm must hold client money, i.e., money that you’ve paid in as part of your debt management plan.
- 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 our rules.
We may cover money a firm holds under a debt management plan, but we don’t protect:
- Money that a debtor pays under an individual voluntary arrangement arranged by insolvency practitioners (which the FCA doesn’t regulate).
- Debt advice.