The company, which guaranteed to supply a set number of monthly leads to IFAs for a fee, has now withdrawn from the UK market.
Money Ways UK principal Mike Daniels paid £300 in March for five leads.
SMS Signals guaranteed that if the leads were not supplied, then a full refund would be issued.
The firm failed to provide any leads for three months and on June 23 Daniels sent an email to SMS Signals demanding a refund. He is still waiting to be reimbursed.
SMS Signals confirmed that it owes money to the firm, as well as nine other IFAs.
In a statement to Money Marketing, SMS Signals says: “We can confirm that Money Ways was a client of our company and is one of 10 UK-based IFAs still waiting for their deposit refunds, as well as four ex-staff members still waiting for their last month’s salary.
“Our company stopped taking on UK-based IFAs due to the high number of delinquent accounts and difficulty in securing good quality leads. This unfortunately affected a number of the newer clients. Our process of collecting unpaid funds and returning deposits to our clients is almost complete and should be completed this month.”
Daniels says: “The firm started off professionally and it seemed like a good idea but I did not receive any leads at all and SMS Signals has not given me any information about the progress of my refund. I would warn other IFAs to be very dubious about lead-generation companies in future.”