Insolvency Trade Body issues guides to avoiding Rogue Advisors

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In the past 12 months there has been an increase in the number of unregulated lead generators targeting both individuals and businesses who are struggling with debt. Text messaging is one of the most common forms of contact for lead generators. Many of these text messages aimed at consumers are seriously misleading. They are poorly worded such as “Write off up to 80% of your debt”, “Government approved scheme to write off debt” and “3 quick steps to financial freedom”. These lead generators are unregulated because anyone who is offering advice on “liquidating debt” which includes debt management plans, Individual Voluntary Arrangements, Bankruptcy or Debt Relief Orders must be regulated by The Financial Conduct Authority and have permission for debt counseling. Bev Budsworth, MD of The Debt Advisor Ltd advised, “It is impossible to provide advice on all options available to an individual without covering how debt is liquidated. Companies such as The Debt Advisor Ltd who are regulated by The Financial Conduct Authority for debt counseling and debt adjusting have worked hard to make sure they can demonstrate that “treating customers fairly” is core to the advice given. The guidance provided by R3, the trade body that represents Insolvency…

In the past 12 months there has been an increase in the number of unregulated lead generators targeting both individuals and businesses who are struggling with debt.

Text messaging is one of the most common forms of contact for lead generators. Many of these text messages aimed at consumers are seriously misleading. They are poorly worded such as “Write off up to 80% of your debt”, “Government approved scheme to write off debt” and “3 quick steps to financial freedom”.

These lead generators are unregulated because anyone who is offering advice on “liquidating debt” which includes debt management plans, Individual Voluntary Arrangements, Bankruptcy or Debt Relief Orders must be regulated by The Financial Conduct Authority and have permission for debt counseling.

Bev Budsworth, MD of The Debt Advisor Ltd advised, “It is impossible to provide advice on all options available to an individual without covering how debt is liquidated. Companies such as The Debt Advisor Ltd who are regulated by The Financial Conduct Authority for debt counseling and debt adjusting have worked hard to make sure they can demonstrate that “treating customers fairly” is core to the advice given.

The guidance provided by R3, the trade body that represents Insolvency Practitioners sets out to explain how information provided by unregulated advisers is frequently misleading and why their claims are flawed, what consequences may flow from decisions taken on the strength of their advice; and the correct approach to insolvency situations and the best way to get practical advice.

These documents are available for both individuals and businesses.

There a range of solutions depending on whether you are salaried or self employed or you are a director or shareholder of a limited company. If you would like our team to call you, please use our contact form.

All debt solutions need to be carefully considered. IVA’s are formal solutions and failure to keep to the terms can result in your IVA failing and you could end up bankrupt.

There is also free debt help and advice available through a variety of debt charities. For more information, we recommend you visit www.moneyadviceservice.org.uk.

The Debt Advisor is authorised and regulated by The Financial Conduct Authority (reg no: 606669). Bev Budsworth MD of The Debt Advisor Ltd is also regulated by The Insolvency Practitioners Association.

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