Last week the government issued a call for evidence “In support of the Consumer Credit and Personal Insolvency Review”, which looks likely to examine in detail almost all of the framework of legislation, regulation and practice surrounding these two areas and which could lead to major changes.

Everything is up for grabs – but, as far as debt resolution is concerned, we have already identified a major change in emphasis which could benefit our industry. The document says:

“It is important to remember that a properly operating insolvency regime carries great benefit for debtors and creditors. Such a regime must be funded by those who benefit from its operation, and must not form a burden on the public purse”. (our emboldening).

So, there is a chance – if we as an industry are trusted by debtors, creditors and legislators – to make the point that where people can pay for advice (and creditors can afford the cost of enhanced returns), that it’s right to charge for that service.

There are huge opportunities and risks for the debt resolution industry in this process. It’s a chance to look at how creditors behave toward non-performing debtors and to suggest ways of bringing about  a real debtor-first culture. It’s an opportunity too to look at every debt resolution procedure, including debt management plans and to shape their future. This could even include the possibility of re-looking at the Simple IVA (SIVA). Almost certainly, the simultaneously published response to last year’s Ministry of Justice Consultation on regulated debt management plans will be included in this process.

Our challenge now is to respond to this, as an industry – and with authority – by December 10. Time is short and this is not a simple task, because we are not just being asked for our opinions – this is a call for evidence and we need to respond with facts. DRF will respond – and I’ll tell you how you can help with this in a moment, but, BIS and Treasury will welcome responses from any interested party.

If you want to help, we urge you to download and read the .pdf of the Call For Evidence. We are looking for members’ views – and will create a synthesis of those we receive byFriday November 23. In advance of that, however, we would love to hear from any member who has views and can help provide facts and data to support them to work more closely with us in our response. If, after having read the document, you believe you can contribute, please contact Andrew Smith (andrew.smith@debtresolutionforum.org.uk) as soon as you can.

As always, we’ll keep ypu informed of our progress.