R3 backs call for debt management regulation

Business recovery body R3 has thrown its weight behind the Insolvency
Practitioners Association’s plea to be able to regulate debt management

R3 president Tony Supperstone has welcomed the IPA’s plan to regulate the
growing debt management industry, following fears that they some might miss-sell
plans to debt-laden clients.

‘We are urging the regulation of debt management companies to ensure that
members of the public are fully aware of all the options, be it a debt
management agreement, IVA or indeed bankruptcy,’ said Supperstone.

R3 would also like to see separate authorisation to regulate the
entrepreneurs behind the large IVA providers, as they are not currently
regulated to the extent of the insolvency practitioners administering the IVAs,
Supperstone added.

The use of debt management agreements, IVAs and bankruptcy proceedings have
leapt in recent times due to the level of UK consumer debt, estimated at one
trillion pounds on loans, credit cards and mortgages.

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