This report looks at whether there is detriment in the PTD market.
We make the following recommendations which we think will address some of the detriment we see in the PTD (and IVA) market:
> For there to be a ban on the use of lead generators who introduce new business to insolvency practitioners for financial reward, especially if they are unregulated.
> For all potential consumers of PTDs to receive Financial Conduct Authority authorised debt advice on all of their relevant debt options, to ensure they can make an informed choice on whether a PTD is best for their circumstances. This would not necessarily need to come from the free advice sector. Insolvency firms can choose to be dual regulated.
> For there to be an independent insolvency complaints body like the Financial Ombudsman Service with powers to cancel a PTD that was not in the consumer’s best interests and that can also make decisions on redress where necessary.
> For there to be a stronger regulatory focus on how firms respond to unforeseen changes of circumstances that make a PTD no longer viable.