Business influencers are nothing new. From motivational speakers like Gary Vaynerchuk to general #RiseAndGrind entrepreneurs on your timelines, people trying to show off their hustle are everywhere.
Adam Deering is one of these.
A glance at his pinned Instagram stories will show the silver-haired 38-year-old asking his followers whether they’re ‘focused on their missions’, and advising them that they’re ‘going to f***ing die one day’ so they should ‘run at [their dreams] like [they’re] on f***ing fire’.
It’s the standard motivational schtick you’ll find on every hustle porn account, and Deering’s backstory makes it all the more touching.
Brought up in Urmston, Greater Manchester, he was looked after by his grandparents from the age of ten, and was expelled from school aged 14.
After a three-year stint in the RAF, Deering returned home and struggled to find a career, instead ‘bumming around in rubbish jobs and getting fired.’
He later managed to find a sales job for a debt management firm, where he climbed up the ladder, and by 21 he left to start his own business in the same field. He’s also battled with alcohol and drug addiction, and has now been sober for a number of years, after attending a Thai rehab clinic alongside Pete Doherty.
Adam now has a number of business interests, including property development and tech. The one many people know him for, however, is Hanover Insolvency.
Adam’s net worth is reported to be £50 million, with Hanover’s annual turnover reported to be at £8 million in 2017.
Insolvency companies offer products such as IVAs, which are agreements between you and your creditors where some of your debt is written off and some is paid back in installments that are manageable for you.
While IVAs can be a valuable thing for people who are in serious amounts of debt, companies that manage them have proven controversial due to charging fees from people who are already in debt.
According to Citizen’s Advice, ‘there are no professional or legal guidelines on what IPs should charge but fees are in the region of £5,000 on average’. This can be paid upfront or over the course of the usually-five-year repayment plan.
Martyn James, Head of Media and Marketing at financial complaints service Resolver says: ‘The fact remains that there are lots of options available to people struggling financially – and for free. From StepChange to debt management plans, people should pursue the free options first.’
Because an IVA can affect your credit rating for a number of years after it’s opened, it’s considered to be a last-ditch option when someone doesn’t see themselves getting out of debt.
Debt in itself is a topic that is shrouded in confusion and distress – particularly for young people.
The Money Advice Service found last year that around half of 18 to 24-year-olds (51%) say they regularly worry about money, but only 27% know what their credit rating is and how it affects them, and 37% of those in debt say they do not have a plan in place to repay the money that they currently owe.
The Sun reported last month that Adam Deering’s social media accounts – in particular, competitions he funded where people could win money and designer goods – had the possibility, according to debt experts, to ‘easily confuse vulnerable people into taking out an IVA unnecessarily.’
There’s no data to suggest this is the case, but a glance at Adam’s Instagram shows he does tend to talk at length about how he’s helped people (although with no specific allusion to IVAs or bankruptcy).
In one picture, a comment is edited into a photo of Adam staring out to sea. The comment says: ‘Hi Adam, just wanted to say a huge huge thank you to your team for helping me get back on track and live a nice family life again with the kids! Means the world to me, wish I had done it sooner and highly recommend’.
Another similar picture shows a comment that says, ‘I honestly was thinking everyone would be better off without me. You’ve changed my life and my kids’ lives for the better by sorting all this out for me. I’ve started watching your motivational videos now as well, it’s made me believe in myself again’.
Couple these stories with his own rags to riches backstory, and personal endorsements from the likes of Wes Nelson, Katie Price, and Georgia Steele, and it inspires a sense of trust in Adam.
A spokesman for Deering is keen to state that the link between Hanover and Deering doesn’t apply to his social media presence. They told Metro.co.uk: ‘No celebrities have ever endorsed (or mentioned) any of Adam’s companies in the competitions they have run on their accounts or ever targeted people who are in debt.
‘Whilst he is CEO of Hanover Insolvency, a company which helps people who have unmanageable debt, it is only one of many businesses Adam runs.’
Instead, the spokesperson claims that he ‘uses his personal Instagram profile to inspire others to work hard and follow their dreams.’
Regardless of whether you personally believe that Adam’s profile would make people feel that IVAs and bankruptcy are a viable solution for most, there aren’t any warnings among the motivational words, messages of gratitude, and aspirational pictures of Adam on holidays around the world.
In an interview Adam did with Blue’s Simon Webbe about the singer’s bankruptcy, there is no mention of how financially ruinous bankruptcy can be (although there is money advice in the piece to avoid that situation in the first place).
In the interview, Simon says: ‘Still live in a great house. Still drive an amazing car.’ Nowhere does it state how bankruptcy means your assets will be seized by your creditors to pay back what you owe (including your home).
Resolver’s Martyn James says: ‘Insolvency is a huge decision with long-lasting impacts. It’s not something that should ever be incentivised or ‘rewarded’.
‘It’s a last-ditch deal to sort out your finances. Morally and ethically, it’s totally unacceptable to push these services proactively.
‘Fine, I understand that some firms offer these services and need to compete. But anything that normalises or worse, suggests that insolvency is a lifestyle choice, is unacceptable and completely irresponsible.’
There’s also the issue that Adam regularly DMs people with financial advice. On his AdamDeeringIVA Facebook page, the advice reads, ‘In Debt over £5K? Need Help? DM me!’
The question remains whether this advice will be impartial, or whether there are ethical issues to an influencer in this business being able to chat to people on such a personal level (many of whom may be vulnerable) without there being a slant toward insolvency as the best option.
His spokesperson says: ‘Adam is a debt help expert and having worked in the industry for twenty years, he has helped countless individuals take back control of their finances – and their lives…
‘Whilst Hanover do arrange IVAs for people, each person is assessed on a case by case basis. The industry is heavily regulated and creditors have to agree that an IVA is the most suitable method of dealing with an individual’s debt for it to go ahead.
‘For some, IVAs can be a lifeline to help them get their finances back on track, but when an individual is not suitable for an IVA – or there are other options – Hanover always refers to organisations who can help.’
Without seeing the details of the DMs sent between Adam and those in debt, it’s impossible to know whether these referrals taking place.
According to Martyn James, ‘DM me for debt advice’ is great – if you’re highlighting the free help there is out there. But if you’re flogging a life-changing process that could wreck your credit rating for years, then it’s totally irresponsible.
Martyn says: ‘Social media is a communications tool but debt advice – real, balanced and responsible debt advice – should only be given in person or after an in-depth consultation.’
Business means profit in every industry, whether it’s influencers selling you tooth whitening kits or offering discount codes for their new clothing line.
When influencing is mixed with serious financial business, though, and your audience isn’t just risking £20 on a new pair of shoes – but instead their entire credit record – the waters can become very muddy indeed.
Debt Month
This article is part of a month-long focus in November all about debt.
Scary word, we know, but we're hoping if we tackle this head on we'll be able to reduce the shame around money struggles and help everyone improve their understanding of their finances.
Throughout November we'll be publishing first-person accounts of debt, features, advice, and explainers. You can read everything from the month on the Debt Month tag.
If you have a story to share, a topic you want us to cover, or a question that needs answering, get in touch at MetroLifestyleTeam@Metro.co.uk.
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source https://metro.co.uk/2019/11/22/adam-deering-influencer-made-millions-debt-insolvency-11194719/
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