More NewsDebt manager shuns new insolvency watchdog

Debt manager shuns new insolvency watchdog

Debt Free Direct declines to join new body, throwing its standards into doubt

One of the biggest debt management companies has declined to join a new
self-regulatory regime, casting doubt on the quality standards of the new
watchdog.

A fortnight ago a group of debt management companies set up a regime of
self-regulation called the
Debt Resolution Forum, under the auspices of the Insolvency Practitioners’
Association (IPA), amidst fears that Individual Voluntary Agreements were being
missold to individuals who would be better off in bankruptcy.

But Debt Free Direct, one
of the largest companies in the industry with a turnover of £12m, has said it
will not join at the outset, opting instead for an independent audit from an
unnamed firm.

Finance director Paul Latham said it will not join until it is convinced the
body is setting a high enough standard. ‘The DRF hasn’t defined its standards.
If they are as high as ours we’d be delighted to join but our concern is they
need to pin their values to the mast.’

A meeting to thrash out details of how the DRF’s regulatory arm will operate
will take place next week.

‘Our audit will show we advertise our services responsibly; that we verify we
get the best offer from debtors; and appropriate advice is given to debtors. We
had a very enthusiastic response from creditors on our [audit]scheme,’ said
Latham.

IPA chief executive Nick Sabin said he was committed to ‘staying in touch’
with the company and expects them to join the forum later.

Further reading

IPA to set up regulator for
debt management firms

Debt Free Direct posts
massive growth

Related Articles

Amazon UK halves its corporation tax bill despite increased turnover

More News Amazon UK halves its corporation tax bill despite increased turnover

4m Alia Shoaib, Reporter
Increase in UK business confidence despite Brexit, according to ICAEW

More News Increase in UK business confidence despite Brexit, according to ICAEW

7m Alia Shoaib, Reporter
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

Insolvency The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

11m Accountancy Age editorial
Leonard Curtis called in as administrators for builders Boshers

Legal Leonard Curtis called in as administrators for builders Boshers

11m Stephanie Wix, Writer
New Year Honours of 2017

Accounting Standards New Year Honours of 2017

11m Stephanie Wix, Writer
"Not enough time" to implement MTD by 2018, says Tyrie

Corporate Tax "Not enough time" to implement MTD by 2018, says Tyrie

1y Stephanie Wix, Writer
Colin: A spoonful of investment...

Governance Colin: A spoonful of investment...

1y Stephanie Wix, Writer