Shelved plans for independent insolvency regulator “disappointing” says debt advice charity
The charity behind National Debtline has today responded to the Government’s decision to row back on plans to bring insolvency firms under independent regulation, calling the decision disappointing.
The Money Advice Trust, which runs the free National Debtline and Business Debtline advice services, warns that today’s changes do not go far enough to protect people in financial difficulty from harmful practices.
Highlighting the impact poor practice in the personal insolvency market has for people experiencing problem debt, the charity is now calling for rules to ensure people receive FCA-regulated debt advice before being able to enter an individual voluntary agreement (IVA).
David Cheadle, acting chief executive at the Money Advice Trust, the charity that runs National Debtline said:
“While today’s decision to regulate insolvency firms, rather than individual Insolvency Practitioners, is a small welcome step, it is disappointing to see the Government roll back its commitment to do this under a single, independent regulator.
“Our advisers at National Debtline regularly hear from callers dealing with the fallout of IVAs that are in many cases not right for their circumstances, and which can set their route out of debt back by many years.
“More needs to be done to tackle harmful practices in the insolvency market, including rules to ensure people receive debt advice from an FCA regulated provider before an IVA can be put in place.
“With millions of households already struggling due to the impact of high costs, ensuring people are able to access safe routes out of debt is more important than ever.
“I would encourage anyone worried about their finances to contact National Debtline as soon as possible.”
National Debtline provides free, independent advice. Contact us on 0808 808 4000 or via www.nationaldebtline.org.