Harrington Brooks has become the first British debt management firm to agree a redress package with the Financial Conduct Authority.

Harrington Brooks has become the first British debt management firm to agree a redress package since the Financial Conduct Authority took over responsibility for regulating the sector on April Fool's Day.

In September 2014, Harrington Brooks told the FCA that communications with some customers’ creditors had been delayed, meaning customers may have been left with the impression that the firm had been in contact with creditors when it had not. The delay resulted in some people owing more in interest and charges than if the firm had contacted creditors sooner.

Customers were affected by the delays in two ways. The firm did not write to their creditors quickly enough, so interest and charges on their debts were frozen late. Also, the firm did not write to customers quickly enough once it had negotiated with creditors on their behalf. As a result of such delays, customers did not know that interest and charges on their debts had not been frozen.

The FCA took no heavy-handed action, merely asking the firm to compensate consumers. Nor did the case seem to involve former high-net-worth individuals in desperate straits, covering a mere £185,000 in redress to over 4,500 customers, but this is undoubtedly a sign of things to come.