The regulator says it had concerns over how the debt management company was handling the money of its customers and has now launched an investigation into the activities of the firm.

Stephen Hunt of Griffins Insolvency Litigation Forensics has been appointed as provisional liquidator. As the appointment is provisional, the management of TDR will have the opportunity to challenge the FCA’s concerns before the court and to apply to have the appointment set aside.

The FCA is writing to all affected TDR customers to advise them of the free help and advice that is available to them through the Money Advice Service and says it will continue to work closely with the firm to ensure that customers are treated fairly.

TDR is a debt management company which operates a full and final settlement model. This typically sees the customer make payments to the debt management firm which, in turn, makes a minimum or nominal payment to the creditor. The remaining balance of the payment from the customer less fees is held by the debt management firm to create an accumulated fund over time which is then used in negotiations with creditors.

The FCA’s petition for winding up the company will be heard at a later date. The regulator is part-way through a second thematic review of the debt management sector the findings of which will be published in March 2019.

Report by Pat Sweet