8 December 2011 Last updated at 08:30 ET

Arrest after Somerset debt firm goes bust

A 42-year-old man has been arrested after a Somerset-based debt management company went bust leaving its clients owed about £600,000.

More than 80 people had given the money to DebtDr so it could arrange full and final settlements with their creditors.

Avon and Somerset Constabulary said a man was arrested on suspicion of fraud and has been released on bail.

The arrest follows an investigation into the company by BBC current affairs programme Inside Out West.

DebtDr, based in South Petherton, was the trading name of Hermes Financial Solutions Ltd, which ceased trading in April.

For a fee, the company helped clients to pay off their creditors and, in many cases, took a lump sum from them to offer as a full and final settlement of their debts.

In many cases, clients borrowed the money to give to DebtDr to use in its negotiations with creditors.

Hermes Financial Solutions was wound up in July of this year and a liquidator appointed.