Change is coming to the debt management industry due to forthcoming regulation expected to come from the ministry of the justice. The government’s usual financial watchdog the Financial Services Authority is busy examining the results of the worldwide banking collapse and looking at the banking sector in greater depth, so many industry analysts believe the ministry of justice will be positioned to regulate the Debt Management Industry for the foreseeable future.
The numbers of operating debt management companies have increased greatly over the last 18 months, with numbers increasing from 1000 companies to over 3000 presently estimated. Some companies have chosen to go through self regulation; the majority are unregulated unlike insolvency practitioners who are strongly regulated in their processing of IVA’s.
The main self regulation body the DRF(Debt Resolution Forum) comprises of over 25 of the leading companies within the industry, and has taken steps to allow the industry to regulate itself, before legally required to by the ministry of Justice.
The Debt Resolution Forum is committed to industry wide professional standards which is a goal all its members are fully committed to. The DRF believe any debt resolution provided must meet the best interests of the debtor, should take into consideration the needs of the creditors and it should be obvious that it is in the best interest of all parties involved.
Members of the Debt Resolution Forum have taken many measures to improve the professional standards which can be provided to customers. Debt Release Direct who are a leading members of the DRF has taken the unique step of making the commitment that all its advisors will be qualified with the Certificate of Debt Resolution in the next 12 months. The DRF describes the Certficate of Debt Resolution as ” tangible evidence of DRF’s commitment to professional standards”. Debt Release Direct will be the only debt management company to commit to achieve this professional standard.
It still remains to be seen if the ministry of justice will take the self regulation of the DRF into consideration, as they approach the industry. Many industry experts believe they will, but only time will tell.
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