R3 welcomes BIS enquiry into personal insolvency

INSOLVENCY trade body R3 has welcomed the government’s announced it will examine certain personal insolvency processes.

The department for Business Innovation and Skills launched the enquiry into debt management following responses to its consultation “Consumer Credit and Personal Insolvency Review.

The inquiry will focus on debt management plans which are not regulated and do not have to be arranged by a licensed insolvency practitioner.

President of R3 Frances Coulson (pictured) said: “R3 welcomes the announcement that the BIS Select Committee will be launching an enquiry into Debt Management. Debt management plans have been under-regulated for far too long.

“DMP providers should be subject to the same high standards of regulation, monitoring and professionalism as licensed professionals. We’ve not yet seen enough action from the Government in this important area, and this is a good start.”