A debt management firm has agreed with the Financial Conduct Authority (FCA) to stop taking on new clients and arranging new payment plans.
PDHL has reached an agreement with the regulator to apply voluntarily for requirements to be imposed on it.
These requirements will mean the business can no longer make any new arrangements with customers that involve debt repayment plans, or debt counselling services.
They also mean that within five working days of acceptance of its application, it will have to be place an FCA-approved notice on its website, telling people that it can no longer undertake new debt management business.
The application was made on June 12 under 55L(5)(a) of the Financial Services and Markets Action 2000.
Earlier this year PDHL acquired Kensington Financial Management Consultants from its owner, Money Advice Group, for an undisclosed sum.
Money Advice Group announced the sale of its Carrington-based debt management business in March, stating that all active debt management clients had been transferred to PDHL, along with 48 Kensington employees, the brand, website and trading name.
At the time Stuart Parkin, founder and director at Money Advice Group, said: “The sale is the result of a comprehensive tender process, which included five months of research and negotiations.”
By Marcel LeGouais