DEBT management firm Harrington Brooks yesterday agreed to pay customers £185,000 after its sluggish services added fees and interest costs to vulnerable borrowers.
The firm was supposed to help struggling customers manage their debts.
But the Financial Conduct Authority (FCA) found it was slow to contact creditors, which meant the interest and charges on the debts was not frozen promptly.
And Harrington Brooks failed to keep debtors updated, so they did not know the fees were still mounting.
“Debt management customers are struggling financially and often in difficult situations so it’s important that when people are putting their trust in a firm, they get the service they have paid for,” said the FCA’s Linda Woodall.
“When things go wrong we expect firms to put them right for their customers and we are pleased that Harrington Brooks is working with us to do this.”
The 4,500 customers will receive an average of £41 in redress each.