Last updated: 6 November 2026

The FCA has placed restrictions on Ethica Resolve Limited, the debt servicer chasing disguised remuneration loans for West 28th Street Limited. The requirements took effect on 5 November 2026 and are set out on the FCA Register.

The FCA’s statement gives the headlines. The Register adds the detail people with letters will want: the portfolio covers 5,754 people, and a court claim against about 3,028 of them is expected on or before 13 November 2026.

This is general information, not legal or financial advice.

What the FCA has required

Disguised remuneration schemes paid contractors, consultants and agency workers through loans instead of salary. The FCA says West 28 bought these loans from a third party and is not authorised or regulated by the FCA. Ethica, which is authorised, acts for it.

The FCA says Ethica agreed to the restrictions. Its statement doesn’t say that either company broke a rule, and it says a court may decide whether the debts can be enforced.

Under the requirements, Ethica must not:

• ask for a default judgment against a defendant until the legal and regulatory requirements are met, including any Validation Order and court order needed
• demand payment from anyone named in the court claim until a court has decided the sum is legally due and recoverable, and any Validation Order required has been granted
• send any message saying or implying that people have a legally enforceable duty to pay before those questions are settled

The dates in the Register

Date	What the Register requires or expects
2 July 2026	Ethica’s service agreement with West 28 began. This is the start date for the payment check below.
9 November, 12pm	Ethica must identify all payments made by people in the portfolio since 2 July, as far as it can after reasonable enquiries.
12 November, 12pm	Ethica must write to everyone sent a Letter of Claim or other pre-action request for payment. The FCA must first confirm it does not object to the wording.
13 November	The Court Claim against about 3,028 people is anticipated on or before this date.
16 November, 12pm	Ethica must report each payment to the FCA: who paid, how much, when, who received it and where the money is held.
21 December	Ethica must finish a vulnerability assessment covering all 5,754 people and report its findings to the FCA.

The 13 November date is not a deadline for borrowers. It is when the claim is expected to be issued.

What the 12 November letter must say

The letter must state prominently that:

• the person has no enforceable obligation to make any payment at this stage in response to the Letter of Claim
• Ethica and West 28 won’t seek a default judgment if the person doesn’t pay
• whether the sum is legally due is for the court to decide
• any required Validation Order and Consumer Credit Act enforcement order must come first, and neither is guaranteed
• the person should still read the Letter of Claim, and must respond to any court documents within the time stated

That last point matters most. “No enforceable obligation at this stage” doesn’t mean the claim has gone away. The restrictions expressly allow the firms to issue, serve and pursue court proceedings.

Why a Validation Order matters

A Validation Order is a written notice from the FCA allowing an agreement to be enforced when it would otherwise be unenforceable because the required licence, authorisation or permission was missing. In its 2 November statement, the FCA said its agreement to any such order is by no means guaranteed.

ContractorUK reports that the FCA declined to say whether West 28 has applied for one. The same report says letters from West 28’s solicitors, Trethowans, cite a validation order and a court order under section 127 of the Consumer Credit Act 1974.

Some recipients dispute that they ever owed the money. The FCA says that question is unresolved.

Who isn’t in the court claim

Taking the Register’s figures, about 2,726 of the 5,754 people are outside the anticipated claim. The Register records no present intention to send them assignment notices, default notices or similar demands, and says Ethica will give the FCA 25 working days’ notice before doing so.

It doesn’t say they are off the hook. Nor does it say how to tell which group you’re in, so the letter and any court papers are the best guide.

If you’ve already paid

The payment exercise covers money paid since 2 July 2026. The Register requires Ethica to identify and report those payments, including where the money is held.

It doesn’t mention refunds, so don’t assume one will follow. If you’ve paid, keep your records and consider asking a legal adviser about your position. The requirements still allow Ethica to respond to requests for information from you or your representative.

What people with letters can do now

• Read everything and keep it. Note any dates and how the sender wants you to respond.
• Don’t ignore court papers. GOV.UK says you must respond by the date on the claim, and that missing it can lead to a county court judgment in an ordinary money claim. The promise on default judgments is limited, so check the papers rather than rely on it.
• Treat statutory demands carefully. HMRC’s guidance warns these have time limits, and that missing one may mean the loan becomes repayable.
• Get independent advice. HMRC and the FCA both point people towards it. GOV.UK lists legal advisers. National Debtline and StepChange give free debt advice.
• Report pressure. The FCA says undue pressure isn’t acceptable and asks people to tell it.
• Tell them about any difficulties. The FCA says people with health, money or other problems should raise them with whoever is contacting them. If the letters are weighing on you, your GP or Samaritans (116 123) can help.

Where HMRC fits

These demands don’t come from HMRC. Its guidance says the government can’t intervene in private disputes over loan contracts, and that HMRC can’t refund loan charge already paid or change a settlement agreement.

The guidance also says a lender, and any third party seeking recovery, must generally be FCA-authorised with the right permission.

On complaints, the Register says the Financial Ombudsman Service may be able to look at a complaint about Ethica, once the firm has had the chance to deal with it. West 28 is not FCA-regulated, and HMRC notes the ombudsman usually only handles complaints about regulated firms.

What happens next

Three things will show where this is heading: whether the Court Claim is issued by 13 November, what the FCA-cleared letter says, and whether West 28 seeks a Validation Order. For 23 people in Ethica’s “red” vulnerability category, the firm must use its best endeavours to keep them out of proceedings, or have them removed if already named.

For more on recent FCA action, see our pieces on the six registered-only lenders it restricted, the car finance redress scheme and Acorn Property Invest.

Sources: FCA Register: Ethica Resolve Limited; FCA statement, 5 November 2026; FCA statement, 2 November 2026; HMRC guidance; ContractorUK, 5 November 2026.