Debt firm welcomes plans to regulate industry

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 25, 2009 -- A midlands based debt management firm is welcoming the recently announced launch of a government consultation on regulation of the debt management industry.

According to Michelle Gilbourne, Director of Nottingham based company, Bournes Debt Solutions, such regulation is long overdue, but runs the risk of not being appropriate to the industry.

“Bournes welcomes this move, as we have seen a lot of bad practice from other debt management and IVA (Individual Voluntary Agreement) companies that give agencies such as ours a bad reputation” commented Michelle.

“We believe that all agencies offering debt management advice should be trained at specialist level to prevent people from entering into a debt management plan or IVA that could result in them losing their homes” she added.

“We are seriously concerned about suggested plans for regulation of debt management firms by a body which currently oversees insolvency practitioners” said Michelle.

The Insolvency Practitioners Association, The Ministry of Justice and the Office are Fair Trading intend to meet with the Debt Resolution Forum (DRF) at a conference on the 10th of October to push ahead on a national certificate in debt.

It has also been suggested by the DRF that audits on debt management companies are to be carried out by Insolvency Practitioners.

“We do not recognise this training, as the programme has been developed by the same people who wrote the CeMAP qualification for financial advisors. Their background is in finance, not debt advice” stated Michelle.

Specialist training is already available for debt advice agencies through the Institute of Money Advice. This organisation trains advisors in Law Centres and Citizens Advice Bureaux. Training is also available through Wiser Advisor courses, run through the Citizens Advice Bureau.

“We have helped several clients who have previously been in an IVA with insolvency practitioners, Blair Endersby and have struggled to manage their essential expenses to meet the costs of their IVA” explained Michelle.

“One client was in serious arrears with his mortgage and was at risk of having his home repossessed. He had been paying Blair Endersby over three hundred pounds per month.
“According to our financial statement, this individual could barely afford one hundred pounds per month and should never have been allowed to enter an IVA.

“It is shocking to see qualified Insolvency Practitioners failing to identify hardship and advising people to enter five year programmes that are unsustainable.

“We are waiting for the consultation paper to be released by the government to have our say on the proposals” concluded Michelle.

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