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20/10/2017

FCA to carry out review into the debt management sector – R3 comment

In response to the news that the Financial Conduct Authority is to undertake a review of the debt management sector and of debt management plans (DMPs), Mark Sands, chair of insolvency trade body R3’s Personal Insolvency Committee, commented:

"R3 welcomes the news that the FCA is undertaking a second in-depth review of the debt management industry.

“Debt management plans can be an effective way for individuals to come to an agreement with their creditors, while remaining outside a formal insolvency procedure. However, it can be difficult for vulnerable individuals to work out which is the most appropriate debt solution for their particular situation, and receiving misleading or incomplete advice can make individual debt problems much worse.

“R3 supports the FCA’s efforts to highlight examples of bad practice and to remove unscrupulous firms from the market, to ensure that individuals who find themselves in need of help to deal with their debts have ready access to reputable and reliable advisors.

"R3 would also welcome any move towards recording the number of existing debt management plans, in order to give a more accurate picture of the overall personal finance situation in the UK, as these plans are not currently captured in the official statistics on insolvency.”

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.