HELP - Compass Debt Counsellors - CREDITORS MEETING 30th March in Leicester

undaunted

Surely this is a matter for the FCA and client monies should be protected and available for either payment to creditors or return to the client.


https://www.handbook.fca.org.uk/handbook/CASS/11/13.html




Quite how they could have managed to squirrel away thousands of pounds of client money without query from anyone escapes me. Any payments made should have been promptly distributed to creditors

esmerellda

Indeed. It does seem many people have been in the DMP ( and 'savings') since well before the Regs were added April 2014 - the FCA are still sorting out the handover from OFT to FCA of Debt firms - hence the cancellation of licences recently.

TERMS from 2012 indicate it should be in client account

10 How we hold your money
a) Payments made by you which will be paid to your creditors are held in a client trust account together with money we hold for our other clients.
b) We will only take our management fee when we make payments to your creditors.
c) Any money held for you which is not due to creditors or to us under this agreement, may be paid to you or to your order through a UK bank account, in your name or (where you hold a joint account) in your name and the name of the other person.
d) If there is any money which we hold for you and we are for any reason unable to pay it to you in line with these terms, we will write to you to ask for your instructions for payment.

Worth a quiz of the FCA though. I can't believe ( well I can but don't want to) that no checks that any client moneys were ringfenced properly after Bournes.

fermi

It could all be sitting there in a separate account, waiting for the Administrator/Liquidator/FCA to distribute.

Past experience with similar cases though makes me doubt that it will be or that they properly ring-fenced, especially given how RMR/Compass went from trading more or less in the black to ~ £1/4m in the red in a year.

If it is there though, I will be the first to be pleased to be wrong.

fermi

http://www.dailymail.co.uk/news/article-3488620/Hundreds-lives-left-ruins-debt-management-firm-run-Tory-MP-s-husband-goes-bust-500-households-facing-loss-large-sums-money.html

Hundreds of lives left in ruins as debt management firm run by Tory MP's husband goes bust: At least 500 households facing the loss of large sums of money

• Derby North MP Amanda Solloway's husband Rob ran controversial firm
• Venture offered to eradicate household debts helping to deal with creditors
• It also promised to reduce the amount of money that each client owed
• Compass Debt Counsellors went into voluntary liquidation this year
• Some clients have paid out thousands while not clearing any of their debts

fermi

"A whistleblower told the Mail he first raised concerns about Compass with the Office of Fair Trading (OFT) in 2011 and had also contacted officials at the Financial Conduct Authority (FCA).

In an email to the OFT, he said: ‘I worked for Compass Debt Counsellors, a fee-charging debt management company. Clients are told that their payments are split 50/50 with half going to the creditors and the other half goes into their own personal client account to build up an amount for full and final settlements. Monthly clients pay in between £400,000 and £700,000 as we have over a thousand clients.’

In 2014, the whistleblower again tried to raise the alert with the FCA."

"Alan Simon, of AABRS insolvency specialists, said at least 500 clients are thought to be affected. Asked if their money had been safeguarded, he said: ‘We don’t know where it is yet, we are still looking into that. We are working with the FCA.’"

Muttipops

Reading the above and the whole article in the Daily Mail, I wish that ALL Debt Management Companies were properly run charities and that no one could make a profit from other peoples' debt.
I extend my sympathies to all those who are stuck in the middle of this terrible fiasco.

Wookie78

We're trying to fill out the insolvency forms that we were emailed and wandering if any one can help?
the proxy section and voting instructions for resolutions and creditors statement of claim. We have never had to do this before and we are at a total loss 😫

Wingco44

Pollyx7 wrote: »

Hi, I'm new too this site but not new to debt!! I found out yesterday that the Debt Management Company we had been using for the past 8 years has/is going into liquidation. I need some advice on whether I should be contacting my creditors direct and informing them of the situation and assure them we will continue paying their agreed amounts until we can get further advise?

Or does anyone out their have any different advice, I just want to keep paying as my credit rating has started to recover a bit and do not want any further defaults.

1. Don't phone your creditors - send letters by recorded delivery - include a CCA letter (Template available in the library on here).

2. Contact the administrators info@aabrs.com and register your interest in making a claim if any money is uncovered (don't hold your breath - besides, these case take years to unravel.

3. I am continuing to pay more than Compass paid and my creditors appear to be happy so far - and why not? But some people believe you should stop payments and see what happens. I can't afford to do that as CCJs and Defaults would affect my mortgage extension due in August.

4. Don't panic - it's really easy, you are in control, but arm yourself with advice on here and other similar sites.

5. Read the small print if contacted by Abbey Solicitors - it's frightening but a lot of people have signed - not sure why?

fermi

Wookie78 wrote: »

We're trying to fill out the insolvency forms that we were emailed and wandering if any one can help?
the proxy section and voting instructions for resolutions and creditors statement of claim. We have never had to do this before and we are at a total loss ��

Not had to fill one out either.....

I read it that you can have yourself or the chairman of the meeting or someone else to vote for you, however you select on the form? They have to vote on each resolution for you as you specify, so can't see it really makes much difference which it is?

Wookie78

Thanks so much for the speedy reply! I know I sound stupid but are we voting for or against?!? I don't know what benefits us. The last thing I ever thought I would be filling in paperwork like this. Thank you