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In The Spotlight
- Family debt advice business scoops Franchisee of the Year award
- Dundee-based brokerage wins Business of the Year award for debt solutions
- One advisor, two debt management referrals and over £600 commission
- Former mortgage packager tells of transition to award winning debt advisor
- EuroDebt and mortgageforce partnership goes from strength to strength
Where do Cartel clients turn now?
Wednesday 24th March 2010Following the closure of controversial claims handler, Cartel Client Review, by the Ministry of Justice last week, debt experts have stepped in to offer assistance to its former clients.
Various news reports have indicated that former Cartel customers could be forced to pay their own legal fees, after a number of cases were lost by its legal firm, CCLS, which was shut down a few weeks previously.
Rival claims management firms have called for brokers to turn their clients on to their services instead, sending out marketing emails with statements such as: “I am sure you are all disappointed [by the closure of Cartel Client Review] however, are now looking for options to rebuild the relationship with your clients and receive a financial reward”.
However, it is hard to imagine many brokers who have had their clients affected by the collapse of the controversial sector’s main player will be eager to dive back down the claims management route again.
With indebted customers who originally turned to the claims handler to get their credit card agreements written off – in exchange for an upfront fee of £495 – now faced with court fees reaching up to £30,000 each, many will be turning to their advisors for help.
Graham Dennis, the franchise director of debt solutions provider, EuroDebt, has said that affected brokers and their clients should seek impartial advice or call a debt solutions provider to discuss other debt management options.
“I feel sorry for all the brokers who became agents for Cartel and trawled their client base, making promises that the firm could not keep.” He said. “Now, with the claims management industry shot down in flames, I can only predict that this firm will be the first of many to close.”
He continued: “For brokers looking to get back into their clients’ good books, it would be an idea to get them financial or debt advice as soon as possible, as well as consider turning them towards debt management, which is a far more scrupulous sector than the claim chasing one.”
The Ministry of Justice closed Cartel Client Review last week, saying: “Enforcement action is taken against businesses which fail to comply with the conduct rules…This means that CCR will no longer be able to carry out any claims management services.”
· If you were acting as an agent for Cartel Client Review and require advice about what to do with clients who have made claims, contact Graham Dennis at graham.dennis@eurodebt.com
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