FCA acts to protect consumers facing demands for disguised remuneration scheme loan repayments
By FCA
AI summary of the source article
The FCA has secured restrictions against debt collector Ethica Resolve Limited over repayment demands for disguised remuneration scheme loans. Acting for unauthorized firm West 28th Street Limited, Ethica must pause payment demands while regulatory and legal issues are resolved.
Why it matters
The requirements agreed protect consumers from avoidable harm while the relevant regulatory and legal issues are resolved.
Key facts
- Ethica Resolve Limited agreed to FCA restrictions after demanding repayments on disguised remuneration scheme loans for unauthorized firm West 28th Street Limited.
- Ethica will inform affected consumers that they have no enforceable obligation to pay at this stage and will halt further payment demands in the proposed court claim.
- Ethica and West 28 will not ask a court for default judgments against individuals who have not responded to legal claims.
Source excerpt · FCA
We've intervened and Ethica Resolve Limited (Ethica), an FCA authorised firm that services and collects debt on behalf of creditors, has agreed to restrictions. These follow demands it made for people to repay loans, or purported loans, provided as part of disguised remuneration schemes. Ethica is acting on behalf of West 28th Street Limited (West 28), which bought disguised remuneration loans fro…