It has come to light that TCF Debt Solutions (UK) Ltd has convened a meeting of creditors to be held on 6 August 2010 to place the company into liquidation. Numerous advertisers and brokers are owed monies, how much has yet to be established.
The Manchester based firm appears to have sold its assets, prior to liquidation to The MoneyPlus Group for an undisclosed amount. The MoneyPlus Group incorporates Chiltern Debt Management, Hamilton Locke Debt Management and The Debt People.
According to Debt Management Today, Chris Davis, CEO of the MoneyPlus Group has confirmed that they acquired TCF’s assets on the 9th of July, after being tipped off by an unnamed third party that the firm’s clients and back book might be for sale. They state they have bought the assets and not the business and that certain TCF staff have joined Moneyplus.
Mr Davis said that although the MoneyPlus Group was not responsible for paying TCF’s brokers any outstanding commission payments, all money owed to intermediaries would be paid as a sign of goodwill which he thinks might be around £7,000 owed to 35 brokers.
TCF is the creation of Andrew Moody previously of Loan Options Limited which went into administration in August 2008 allegedly leaving circa £378,000 of liabilities. At the time this parked controversy as he immediately relaunched Loan Options through the Merchant Business Finance Brand which was then wound up on the 10 July 2009.
Selling assets prior to liquidation is rarely to be recommended as creditors are disenfranchised as it is a “done” deal. All a little confusing and not good news for our industry whose trading activities are under the spotlight by the Office of Fair Trading.
All the more reason to carry out checks before you choose a debt solution company to work with. Brokers have a tough enough time getting mortgage/financing deals away, the last thing they want is their debt solutions partner going bust.
The Debt Advisor business has been around since 1999 has opted for regulation beyond that which is required (Members of DEMSA and DRF) plus headed up Bev Budsworth, an Insolvency Practitioner who has built a solid reputation over the years.
DEMSA is the first trade body within the debt management industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme – for advice on Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA).
As a member of DEMSA we fully subscribe to the DEMSA Code of Conduct which has been approved by the OFT (Office of Fair Trading), which covers the following areas:
- Compliance with Statutory Regulations and OFT Debt Management Guidance
- Marketing, Advertising and Publicity
- Information to Customers
- Contract Terms
- Client Accounts and Interests
- Dealings with Lenders
- Complaint handling