Compass debt company

[Compass]

Re: Compass debt company

Both these organisations have failed you, ask these government bodies why nothing was done when I provided damning concrete evidence against Compass. Original email removed but I will provide to any Police investigation.


Reported to OFT that they were criminals. reply

Consumer Credit Act 1974 (the Act)
Complaint Against: R M R Financial Services trading as Compass Debt Counsellors, Mr Robert Solloway trading as Compass Debt Counsellors
Licence No: 637199, 612961

Thank you for your email received on 26 August 2011. I sincerely apologise for the delay in responding.

I can confirm that 2 Consumer Credit Licences at the postcode you mention have the trading name ‘Compass Debt Counsellors’. Under the Consumer Credit Act, holders of consumer credit licences must be fit and competent to do so and the OFT has a duty to monitor the fitness and conduct of all traders who hold such a licence.

We have therefore noted the details of your email, and we will consider this alongside any other complaints we have received with a view to any consumer credit licensing or other action we may decide to take. If we do take any action against these traders we may need to contact you again in the future. Unfortunately, we cannot disclose any details about any action we may take, due to legal restrictions on the OFT relating to disclosure of information.

Thank you again for writing to us and bringing this matter to our attention.

Yours sincerely

XXXXXXXXXXXX
Enquiries and Reporting Centre
Office of Fair Trading

Then to FCA. Reply



Our Ref:

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The Financial Services and Markets Act places restrictions on our ability to provide you with significant feedback including what action the FCA may, or may not, decide to undertake.

Should you require further advice or guidance concerning your position as a 'Whistleblower' we suggest that you visit the Public Concern at Work website at www.pcaw.org.uk. This organisation can also be contacted on 02074046609.

Additional information and guidance on the FCA whistleblowing procedures can be found atwww.fca.org.uk/site-info/contact/whistleblowing or the whistleblowing desk can be contacted on 02070669200.

Yours sincerely

XXXXXXXXXX


Associate – Whistleblowing Team
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Financial Conduct Authority
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Subject: Fwd: Debt Management Company Stealing From Clients







I have just read that the FCA will be responsible for policing debt management company's from the 1st of April. With this in mind may I bring the following to your attention. This is a copy of an email I sent to the OFT as I discovered a multi million pound fraud only to be told by the OFT that they were not responsible for debt management company's. To this date new customers are still paying into Compass as it operates like a pyramid sales organisation. If they do not attract new customers through unsolicited calls the whole scheme will collapse and clients will lose everything they have paid in.



Please put a stop to this.



Regards,

XXXXXXXX

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[EXC]

Re: Compass debt company

Tune in to BBC Rip Off Britain Friday 7 October.

Julia Somerville, Gloria Hunniford and Angela Rippon explore stories where viewers feel let down by companies claiming to be the experts - discovering how a business supposed to help people manage their debts left them owing more than they had in the first place.

http://www.bbc.co.uk/programmes/b07yb8bn

[mox113]

Re: Compass debt company

I just wanted to touch base with this forum again after a few months off.

We now have our own DMP sorted and being paid to all but two of our creditors, those two are just not answering letters!! Amongst some good news there have been battles with a couple of these companies. Notably a three hour phone call with Northern Rock and a letter exchange with Cabot that is staggering in its stupidity.

However, it still annoys the hell out of me that we had thousands stolen and there is precious little we can do about it. Action Fraud are taking no action and the police are just not interested.

Anyway, I should have sorted my own plan out years ago.

Good Luck to everyone who was with Compass. Shame on all those who worked there and knew our money was being siphoned off.

[EXC]

Re: Compass debt company

Well done for sorting your own DMP.

[Nibbler]

Re: Compass debt company

Watching Rip Off Britain.....

[EXC]

Re: Compass debt company

Now available on iPlayer http://www.bbc.co.uk/programmes/b07yb8bn

The Compass piece starts at about 13 minutes in.

[danspence000]

Re: Compass debt company

I am wondering the same.

- - - Updated - - -

Hi, just wondering if any update on when the next meeting is with the administrator. Fingers crossed for everyone that we will have some good news.

I am wondering the same

[sal77]

Re: Compass debt company

Hi; I was just wondering if a meeting was held or if anyone has heard anything. Was hoping to of heard something by now. Thanks

[Amethyst]

Re: Compass debt company

Hi; I was just wondering if a meeting was held or if anyone has heard anything. Was hoping to of heard something by now. Thanks

Have you not heard from the Administrators ?

They issued a report last week, not sure why we haven't put it on here, unless it's in another thread - I'll go get it xxx

(Sorry it isn't very good news !)

[Amethyst]

Re: Compass debt company

Here we are. Summary - there's £24k in the bank for creditors - but the creditors are owed £4 million - and there's 760+ of them. So works out about £35 each - and the administrator doesn't think it's worth the cost of distribution.

There are other things going on in the background though but it's going to be a long slog and no one should hold out much hope of getting any of their money back - then if something does happen.

[Wingco]

Re: Compass debt company

Here we are. Summary - there's £24k in the bank for creditors - but the creditors are owed £4 million - and there's 760+ of them. So works out about £35 each - and the administrator doesn't think it's worth the cost of distribution.

There are other things going on in the background though but it's going to be a long slog and no one should hold out much hope of getting any of their money back - then if something does happen.

Whilst an equal share might be £35 - I estimated a much lower figure of £16 as there is likely to be more than 1500 claimants (not just the Compass clients) but I emphasise that these are my personal estimates - there are some major creditors who would take a much larger share than us "clients". It takes a long time to assess each client's claim and then the cost of distributing any money DEFINITELY far outweighs the value of any refund..............at present.

Other recovery efforts are being made but the process is both timely and costly and more importantly, highly confidential. There is some hope, but not much! And nothing is going to happen in the short term - it could take years like the similar Bournes case

I would plead with everyone to sit tight and not email or phone AABRS for general inquiries unless you have something important to report - most people are asking the same type of questions most of which, as you can imagine, are simply unanswerable, and it only costs us all money and eats into what little money there is available. AABRS are naturally paid for their time and Liquidators' time is not cheap even for the admin staff.

The members' Liquidation Committee met with AABRS in October but it was largely to go through the Interim Report and for us to learn about the Liquidator's activity in trying to resolve matters - remember that the Liquidator is independent of both the creditors and Compass, and AABRS is there to wind up the company and extract as much money as is possible for the creditors. They have to go through all the company's financial dealings, and tax affairs and look at the directors' assets and eventually calculate each creditors claim accuracy and value. For some inexplicable reason, the Cloud company that held most of the Compass files, deleted them when Compass allegedly failed to pay their monthly fees - understandable perhaps but clearly very unhelpful. The loss of these documents is making matters extremely difficult.

There is nothing over and above what is in the Interim Report the committee members can add.

The first full report is due at one year - perhaps March/April 2017. The latest report is an interim report.
It's certainly not good news but I doubt any of us really thought we would get our money back. We just want to see some form of justice.

Due to new financial regulations, companies can no longer operate as Compass did and have to meet very strict criteria. The previous supervision of Debt Management Companies left a lot to be desired.

Wingco

[Tangotommy]

Re: Compass debt company

With what you are saying Wingo, and obviously we don't know what is being said behind the scenes. Would there be no case for "fraud" being brought against the directors in the long distance future?.After the final decision of AABRS ( how ever long it takes) do you think they would look in to this possibility as part of their investigation or would it be down to individuals like myself and many others to make a case and submit it to the police/cpr etc?
I know that most of us accept that we will never see the money that they stole from us with their deceit and lies but for myself and I presume many others I would like to see some form of justice and, not for them to walk away from this without going through what many of us have had to deal with in the last 10 months.

Tangotommy

[Wingco]

Re: Compass debt company

The Liquidator is obliged by Law to report any fraudulent activity. It is most certainly part of the Liquidator's duties.
It would interfere with the investigations if individuals were to attempt to take matters in to their own hands. Fraud is the one of the hardest crimes to prove. If you have cast iron proof of fraud, then you should write to the Liquidator with your evidence.
We all know what we thought we were promised but it is far harder to prove it. That said, the Liquidator has been sent various client contracts and monthly statements. If your monthly statements include a "client's pot" of money AND say what it is going to be used for, then you need to forward it to the Liquidator. I have monthly statements but no "client's" pot. I have seen statements that show a separate figure to the main outgoing payments but it doesn't give a specific statement as to what the sum of money was going to be used for. We all believed it was eventually going to build up over time to be used to make full and final offers to our creditors.
Let me know what you have. But verbal un-witnessed comments or phone calls are most unlikely to be sufficient to prove a fraud. Perhaps pure weight of numbers of clients all believing the same thing could be enough, but we are not at that stage yet.
Best
Wingco

[EXC]

Re: Compass debt company

Whilst an equal share might be £35 - I estimated a much lower figure of £16 as there is likely to be more than 1500 claimants (not just the Compass clients) but I emphasise that these are my personal estimates - there are some major creditors who would take a much larger share than us "clients"

Not that it'll make much difference but wasn't the £24k 'pot' money that was in the 'pot' bank account? If so it shouldn't be a company asset distributable creditors, rather it is client monies.

[Wingco]

Re: Compass debt company

Not that it'll make much difference but wasn't the £24k 'pot' money that was in the 'pot' bank account? If so it shouldn't be a company asset distributable creditors, rather it is client monies.

Correct if the account was clearly labelled in that way "For the use of Compass Clients'full and final settlements only" - but it won't, as you say, make any difference. With well in excess of 700 potential "clients, possibly 1500,' the amount is far too small to distribute; the cost of calculating individual amounts and then distributing those amounts is likely to be well in excess of £24 per client, if indeed it is that much.
At this stage, it is far more worthwhile to wait and see what other money can be "found' in order to make it worthwhile to distribute..
The simple principle applies, that where professional staff command fairly high fees for their work, it makes no sense to spend time and money in order to distribute what's left - each claim would cost considerably more than £24 to resolve.
As mentioned in the Interim Report, there is other money that may be realised to the benefit of all creditors.
Wingco