The Financial Conduct Authority (FCA) has stopped three debt management firms from offering debt advice services, after it discovered debtors were paying 90 per cent of their monthly payments in fees. The FCA said the three firms – Sterling Financial Security (Sterling); Haydon Associates Debt Management Consultants Limited (Haydon) and Clear View Finance Limited (Clear View); failed to comply with the requirements that the regulator put in place. These requirements were that the three firms, which are all based in Lichfield, Staffordshire, should have provided written statements to customers setting out their debt position. Because of this failure, along with other issues, the three firms are no longer permitted by the FCA to offer debt management services to customers The companies will no longer be able to negotiate with creditors on their customers’ behalf or set up new debt management or reduction agreements. Most customers with debt reduction plans with the three firms have been paying 90 per cent of their monthly payments in fees, leaving 10p in the pound to pay down the debts for an unlimited period of time. As a result the FCA is now warning customers of all companies to check their debt situation with their creditors urgently, and find out exactly what they owe.....Read more here