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Debt Free Direct posts massive growth

Debt advice business Debt Free Direct has seen interim
turnover and profits leap over the last six months, driven by the growing IVA
market.

Turnover increased for six months ended 31 October 2005 to £12.2m, up 91%
from £6.4m a year earlier. Gross profit climbed to £10m, from £4.7m. Adjusted
profits before tax climbed to £4.3m from £1.9m.

‘Although legislation has been in place since 1986, this is still a young and
growing marketplace which attracts new entrants,’ said chairman Michael
Blackburn.

The growth of the market has seen some debt management businesses club
together to form a lobby group and
begin
self-regulation, a move long-awaited by the insolvency industry.

The Debt Resolution Forum has been set up to act as a lobby group for debt
management providers, and has called in the Insolvency
Practitioners Association
to help set up a regulatory arm of the DRF.

A spokesman for the company said Debt Free Direct has not joined the DRF, but
would not rule out the move in the future.

‘We’re very much in favour of regulation, but not part of the DRF yet,’ the
spokesman said.

Further reading:

Debt management company benefits from
booming sector

Debt regulation may be years away

Debt management industry makes tough call
on debt

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