UK Debt Firms Join Forces in Industry Body

by Mike Bevel, CollectionIndustry.com

According to government statistics published last week, 300 people a day in England and Wales declare themselves insolvent. In response, the consumer credit counseling centers in the United Kingdom have joined together and set up a body to act as a regulator and provide a voice for companies that have found themselves in the spotlight as more and more Britons declare themselves insolvent.

Twenty-seven firms make up the Debt Resolution Forum. Their mission? To speak for companies and advisors working across the industry and to create a set of standards to ensure both debtors and creditors are treated fairly.

Bankruptcies and individual voluntary arrangements (IVAs) — agreements in which troubled borrowers pay off debt over a set period — have hit British headlines this year as the number of troubled debtors soars.

The Debt Resolution Forum’s activities will include training and education programs for member firms, setting up a reputable accreditation system for firms, and efforts to widen access to advice.

The DRF intends to draw up initial regulatory proposals in the next few weeks to secure commitment and funding, it said in a statement.