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FCAPS23/5 referral fees banned
INDUSTRY · DEBT PACKAGING & INSOLVENCY

The FCA banned debt-packaging referral fees. Now prove every customer got impartial advice.

PS23/5 banned debt packagers from taking referral fees. Every IVA and every recommendation must now be defensible - that the customer was given suitable advice, not steered to the most profitable solution. AuditSail checks every ingested call recording against your rules, so the evidence is on file.

  • FCA
  • IPA
  • ICAEW
EXAMPLE
Call recording · Affiliate 1 / Agent 2Flagged
  1. 00:04AgentHi, it's Agent 2 calling from Affiliate 1.
  2. 00:12AgentWho are your creditors, and how much do you owe?
  3. 00:27CustomerI lost my job last month, so it's all got on top of me.
  4. 00:41AgentJust so you know, this call is being recorded.
!
FailHigh

Agent asks about debts before giving the recording notice.

ICO / UK GDPR · transparency notice+2 more findings

DEBT SOLUTIONS COVERED

IVADRODMPBankruptcyBreathing SpaceCCJ defenceIVA variations
THE PS23/5 PROBLEM

Every call is a suitability test now.

The FCA banned debt packager referral fees, which could be many times higher for an IVA than for other debt solutions. If a call agent steered a customer into an IVA when a DRO would have been suitable, you can't argue you didn't know - the IPA, ICAEW, and FCA all expect you to have the evidence.

Debt packagers may not take referral fees from debt solution providers for referrals made after 2 October 2023.

FCA · DEBT PACKAGER REFERRAL FEE BAN, OCTOBER 2023
THE DEBT-PACKAGING CHAINEXAMPLE
  1. Insolvency Practitioner
  2. Debt-packaging firm
  3. Trading style
  4. Lead-gen partner
  5. Sub-affiliate / call agentFlagged

Five tiers · one audit trail · 1 flagged

OUTCOMES

Defensible recommendations. Every customer. Every call.

01

Every call checked for suitability

IVA, DRO, DMP, bankruptcy - every ingested call recording is checked against your suitability rules. No sampling.

02

Vulnerability flagged for review

Signs of vulnerability such as bereavement, mental ill-health or financial shock are flagged against your rules. Your team decides what happens next.

03

Evidence for every decision

Each check records the call, each rule's outcome - pass, fail or inconclusive - and who on your team signed it off.

Call recording · Affiliate 1 / Agent 2EXAMPLE
  • Recording notice before any debt questionsICO / UK GDPRHighFail
  • Vulnerability signs handledYour rulesInconclusive
  • Suitable solution recommendedYour rulesInconclusive
  • Agent names the firmYour rulesPass
Score60/100 · pass mark 80
Sign-offRejected · Reviewer 1
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