Debt Companies in the UK to join new Debt Management Protocol

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As the Insolvency Service roll out their new Debt Management Protocol, specialist debt management company, Baines & Ernst, give their expert opinion on what this will mean for those seeking debt help.

Baines & Ernst

As one of the UK’s leading providers of debt help in the UK, our fundamental aim has always been to ensure that every person we speak to is given the absolute best advice from the beginning

There has been a great deal of news surrounding the debt management sector in recent years as more and more people seek professional help with their finances. While DEMSA member organisations such as Baines & Ernst and debt charities have been working within industry guidelines, there has been a growing need for tighter regulations due to non-audited companies operating freely.

In response to concerns expressed in the 2010 Consumer Credit and Personal Insolvency Review regarding transparency of services offered and fees charged, the Insolvency Service began creating the Debt Management Protocol.

The Protocol aims to protect the needs of consumers who take out Debt Management Plans and is a voluntary code which DEMSA members, debt charities and independent debt companies can sign up to for the benefit of their customers.

There’s no doubt that being in debt is a trying time for families. The constant worry and anxiety surrounding finances can at times lead people to taking action that isn’t particularly right for their circumstances.

Therefore, the introduction of the Protocol marks a turning point within the financial solutions sector and is an opportunity to promote best practices within the industry as Protocol-compliant companies will work towards the Money Advice Service Accredited Quality Framework for debt advice.

Debt Managers Standards Association Members Baines & Ernst say: “When people seek help, they are often at their most vulnerable – they need reassurance that when they call a specialist company or charity for debt help that they are provided with open and transparent advice and offered the best solution to help them turn their financial problems around.

“As one of the UK’s leading providers of debt help in the UK, our fundamental aim has always been to ensure that every person we speak to is given the absolute best advice from the beginning so they can make a full and informed decision regarding their financial future.

“Encouraging other financial solutions providers to maintain the same high standards is a positive step towards ensuring those seeking debt help get the right advice, first time.”

The Insolvency Service’s voluntary Debt Management Protocol is due to start in October 2013 and is available for companies to sign up to. More details surrounding the protocol can be found on the Insolvency Service website.

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Imran Khan

Chrissy Hoey
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