Disguised remuneration loan demands: debt collector agrees to pause under FCA pressure

What has happened

The Financial Conduct Authority (FCA) said on 5 November 2026 that it had intervened with Ethica Resolve Limited, an FCA authorised firm that services and collects debts for creditors. Ethica had demanded that people repay loans, or purported loans, made through disguised remuneration schemes. It acts for West 28th Street Limited, which bought the loans from a third party. The FCA says West 28th Street is not authorised or regulated by the FCA.

Under the requirements agreed with the FCA, Ethica will write to the people affected to explain that they do not have an enforceable obligation to pay at this stage. In the FCA's words, this means they do not need to pay now while the regulatory and legal issues around the purported loans are resolved. Ethica will also make no further demands for payment from affected people in the current proposed court claim while those issues are worked through.

Ethica and West 28th Street have also agreed not to ask a court for a default judgment. That is a judgment made against someone who has not responded to a legal claim. Extra protections for vulnerable people are being put in place, and Ethica will identify affected people who may be vulnerable.

This follows the FCA's earlier statement of 2 November 2026 about these demands. The FCA says it has not yet been decided whether the debts can be enforced, and that this may be decided by a court.

What it means for you

If you had a demand from Ethica about a disguised remuneration loan, you should get a letter saying you do not have to pay at this stage. That gives you time. It does not mean the debt has been cancelled, and it does not mean you will never be asked to pay. The question of whether these loans can be enforced is still open.

The FCA is clear on one point: do not ignore formal court documents about this. If you get a court claim, you must respond by the date on the letter or email. GOV.UK says you might have to pay more or get a county court judgment (CCJ) if you do not respond in time, and that you can defend a claim if you do not think you owe the money. The FCA suggests getting independent legal or debt advice before you decide what to do.

The FCA also says people should not be put under undue pressure when they are contacted about a debt. If that happens to you, you can report it.

Who it affects

People who were paid through a disguised remuneration loan scheme, often contractors, consultants and agency workers, who have had demands for repayment from Ethica Resolve on behalf of West 28th Street.

What you can do

• Read the FCA's statement and wait for Ethica's letter before you pay anything. HMRC's guidance on repaying a disguised remuneration loan to a third party explains what to check about the firm chasing the debt.
• If you receive court papers, do not ignore them. GOV.UK explains how to respond to a court claim for money, including how to defend it and how to ask for another 14 days if you are not paying the full amount.
• Get independent advice before you decide what to do. The FCA recommends legal or debt advice. Free, confidential debt advice is available from MoneyHelper, StepChange, National Debtline and Citizens Advice.
• You can see the restrictions on Ethica's entry on the FCA Register.
• If you feel pressured or treated unfairly by anyone contacting you about the debt, report it to the FCA.

Sources

Every fact in this page was checked against these official sources on 6 November 2026.

1. FCA acts to protect consumers facing demands for disguised remuneration scheme loan repayments Financial Conduct Authority
2. Repaying a disguised remuneration loan to a third party HM Revenue & Customs (GOV.UK)
3. Respond to a court claim for money GOV.UK

Written and fact-checked by the PiggyBank editorial team. Published 6 November 2026. This news is general information, not financial advice. How we write and check our guides.