GLASGOW, SCOTLAND, September 14, 2012 /24-7PressRelease/
-- Capital Credit Union and ScotWest Credit Union have been disturbed to discover some of the worst cases of mis-selling of Scottish Trust Deeds, Sequestration Agreements and other unsuitable plans are rogue insolvency practitioners.
The use of insolvency agreements has greatly increased in recent years, and the once stringent rules for bankruptcy awards have been relaxed to make it available to a wider range of individuals. Combined with more widespread promotion of bankruptcy
as an acceptable debt management solution, the result has been an increasing number of awards over the last few years. It's this wider acceptance of bankruptcy and lessened stigma associated with it that has opened the doors to rogue insolvency practitioners
targeting vulnerable people.
Chief executive of Edinburgh's Capital Credit Union, Marlene Shiels
, said: "Some firms of IPs are quite simply lining their pockets at the expense of increasing numbers of vulnerable people. We are seeing the evidence of what can at best be described as bad practice on a daily basis and most of our members who approach us for help after signing a trust deed are unaware of the consequences of having done so. On a personal level for those involved this is a heartbreaking situation."
Chief executive of ScotWest Credit Union
, Rod Ashley, said: "We have also seen situations where a significant portion of the funds gathered have gone to pay fees to insolvency practitioners, when it is questionable whether a debt arrangement scheme
would actually have been a more appropriate form of relief for the debtor."
Fees for administering an insolvency case can be very high, and experts have warned that in some cases rogue firms are charging a final bill that is almost as large as the original debt. However, debtors are often unaware of how these fees can stack up and the ramifications on their future financial circumstances if they choose personal insolvency, suggesting that some firms are not giving appropriate explanations of what is involved and could be pressuring debtors down the route where they can earn the most money.
, Scottish council member with insolvency trade body R3, said: "No-one should feel pressured to choose one option over another. The choice should depend upon the personal situation of the individual and nobody should feel compelled to take out a PTD or enter into sequestration if they don't believe this is appropriate to their circumstances."
A spokesman for scottishtrustdeed.co.uk, A reputable Trust Deed Scotland Company
and one of the North's largest providers of debt solutions in Scotland
said: "Debt solutions based on personal insolvency are one of a number of ways that debt can be tackled, but like all financial products and services they are only appropriate in certain circumstances. They're not a 'one size fits all', and a thorough evaluation of a debtors financial affairs needs to be undertaken before personal insolvency is recommended."
"We would warn anyone looking to undertake Scottish Bankruptcy
to do their research first. There are many other forms of help available which can protect you against the consequences of Sequestration."
Scottish Trust Deed provide help and advice on the ScottishTrust Deed debt solution. With a Trust Deed you can write off up to 90% of your debt and be completely debt free in 36 months. Our experienced advisors are only a phone call away to help you with your debt problems.
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