On 12 January 2024, the Administrative Court refused permission for Promethean Finance Limited to bring a judicial review claim to challenge the FCA’s rules that ban referral fees for debt packagers.
Debt packagers are regulated providers of debt advice, who typically don’t provide debt solutions themselves. The FCA introduced rules last year which banned debt packagers from receiving referral fees paid by debt solution providers. The ban removed a strong incentive for debt packagers to offer advice which does not have regard to the best interests of the customer or is not appropriate to the individual circumstances of the customer.
The ban is intended to ensure consumers get better advice and help them to access a suitable debt solution where appropriate.