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Statutory Debt Management Scheme

The Ministry of Justice/Insolvency Service recently held a presentation at a Stakeholder Event regarding their thinking on introducing Statutory Debt Management Scheme(s) under powers in the Tribunals Courts & Enforcement Act 2007. The present intention is to issue a consultation paper at the end of June, for which there is likely to be the minimum 12 weeks for responses before proceeding, should Ministers agree, to putting the Scheme(s) in place in April 2010.

It is so important that those involved in the debt industry do get involved in providing feedback for this consultation. 

The scheme should provide the following:

• Protection from creditor action

• Industry wide acceptance of income and expenditure guidelines which are reasonable

• Protection for client funds

• Protection for clients in terms of excessive fees being charged

• Transparency on performance so clients can see how quickly their payments are sent to creditors and how much creditors receive