Carrington Dean receives FCA authorisation and expands debt business

Glasgow-based Carrington Dean Group has become the first full service debt advice and solutions business in Scotland to receive Financial Conduct Authority (FCA) authorisation, capping a year of major developments that included an acquisition and establishing a not-for-profit organisation to assist vulnerable people with Council Tax debt.

Carrington Dean, one of the UK’s longest-established debt advice and solutions businesses, received full FCA authorisation following a rigorous 18 month review that verified that it meets stringent requirements on compliance, systems, processes, and risk management and that staff are well-trained to provide ethical expert advice to people with problem debt.

Carrington Dean chief executive, Peter Dean, said: “Vulnerable people seeking debt advice need to be able to trust they are dealing with an ethical and expert firm that will always put their interests first. Achieving FCA authorisation provides independent verification of Carrington Dean’s commitment to the highest operating standards and our relentless focus on doing what is best for clients. It also reflects on the quality of our people and investment in training and systems.”

The FCA took over regulation of consumer credit (including debt advice and debt management) in 2014 after conducting a review that found serious failings among many firms who put profit before clients’ interests. The FCA has refused authorisation to firms that fail to meet standards and more than 100 debt management firms have exited the market since the FCA began a crackdown on unethical practices.

Carrington Dean, which was founded by Chartered Accountant and insolvency specialist Peter Dean in 2001, recently completed the acquisition of Simple Financial Solutions, one of Scotland’s leading independent debt advice businesses. The Simple team have moved into the group’s new headquarters in Glasgow’s West George Street, bringing the total number of employees across three offices in Glasgow, Gloucester and Dublin to 70.

Carrington Dean has also set up not-for-profit organisation Council Tax Advisors (CTA) to provide free help and pracvtical advice to people in crisis over Council Tax debt. Carrington Dean is the sole private sector funding partner for the Community Interest Company. Council Tax Advisors meets a growing need for help as an estimated 1-in-10 UK households are struggling with Council Tax arrears, including many vulnerable families and individuals.

Mr Dean said: “We saw a strong correlation between people with Council Tax debt and vulnerable families facing a serious debt crisis. We decided to extend a helping hand by funding a free source of immediate help to people facing aggressive debt recovery tactics including wage arrestment and enforcement action as a result of Council Tax arrears.”

CTA, which operates UK–wide from Glasgow and Gloucester mediates on behalf of clients with cash-strapped UK councils who are collectively owed more than £1 billion in arrears. The service helps individuals by assisting them to agree sustainable and affordable repayment solutions and it benefits councils by helping them maximise income at a time when they are struggling to meet the rising cost of social care and other vital services.

Carrington Dean, which is the leading provider of Trust Deeds in Scotland and the largest Payment Distributor for the Debt Arrangement Scheme, is extending its networks through new partnerships. It is also pursuing organic growth through expansion into England and Wales where it provides Individual Voluntary Arrangements (a formal debt solution that enables people to resolve debt through affordable repayments) to a growing client base.

Mr Dean added: “We are pursuing a growth and diversification strategy in 2017 which we expect to increase our share of the UK debt solutions market and to expand our financial services offering. Our vision is to be among the UK’s top five independent debt solutions businesses. We are also committed to supporting Council Tax Advisors and helping it become the number one source of free help with Council Tax arrears.”

Persistently high levels of personal debt remain a major problem for many families who have run up unaffordable debt as they struggle to cope with rising living costs, low or non-existent wages growth, and benefits reforms that have adversely affected many low and middle-income families, including the abolition of centralised Council Tax benefits.

A recent report by the Joseph Rowntree Foundation found that more than seven million people in the UK are living in poverty despite being in employment while the Bank of England warned that unsecured debt is rising at its fastest pace for 11 years.