THE CENTRAL Bank has written to hundreds of customers of a Dublin-based debt-management company recommending they suspend all payments to it immediately and “consider contacting the Garda” if bills to be paid on their behalf by the company are not up to date.
The bank said it had sent out the letters in connection with Dunne and Maxwell – trading as yourmoney.ie– over concerns about the nature of the company's operation and its handling of clients' money.
Dunne and Maxwell has been acting as a debt-management company for over seven years. Its website tells potential customers they have “nothing to loose” (sic) by employing it to manage their finances. It promises to reduce people’s debt by 50 per cent.
The Irish Timesmade several attempts to contact the company by telephone and email yesterday but calls and emails were not returned.
In a letter dated January 20th, the Central Bank wrote to about 500 Dunne and Maxwell customers advising them to stop making payments “with immediate effect”. The bank said people using the company to pay bills or repay loans would have to check directly with bill issuers to make sure their accounts were up to date and if not, it suggested they make contact with the Garda.
The Central Bank has no regulatory power over debt-management companies so it cannot force it to comply with any orders it makes.
The bank’s letter said that “in the public interest and as part of a general review of the debt management sector”, it had inspected the company and had “reasons to be concerned about the nature of the company’s operations and its handling of customers’ money.
“If you are currently making payments to the company, we recommend that you cease all payments with immediate effect. This means that Dunne Maxwell will not be in a position to pay any bills on your behalf. It is important therefore that you contact creditors without delay in order to inform them of the circumstances and to discuss what arrangements you need to put in place for the future,” the letter, signed by Patricia Moloney of the bank’s consumer protection division, said.
One customer who contacted The Irish Timessaid he had been with Dunne and Maxwell for nearly three years. He had been happy with how the company had managed his money but he expressed concern about the bank's letter and said it had left him in "limbo".
Ann Fitzgerald, chief executive of the National Consumer Agency, said yesterday that legislation covering debt-management companies was essential.
