Debt Management Company Investigation Brings Bans
There was a certain irony to a recent report that the directors of a debt management company – set up to offer advice and assistance to those with debt problems – have been banned from acting as directors for a total of 23 years after action was taken by the Insolvency Service (IS).
The directors came under IS scrutiny after complaints were made to the Financial Conduct Authority, which took action against the company. The company agreed not to take on new clients and the directors agreed not to take more fees from the company.
However, one director transferred more than £200,000 to himself and his associates before resigning, and his fellow director (who now lives in the Philippines) extracted more than £440,000.