regulation

The provision of IVAs is a highly regulated activity. An IVA is a legally binding, contract between a debtor and their unsecured creditors. Under the IVA, the individual agrees to pay an agreed monthly contribution into a trust account supervised by a Licensed Insolvency Practitioner employed by Money Debt & Credit. The Insolvency Practitioner is responsible for ensuring payments are made by the debtor and for making distributions to creditors.

The government is currently on record as rejecting calls for more regulation of the IVA market. Jim Fitzpatrick, the DTI minister responsible for the Insolvency Service told the Financial Times in October 2006: "If we've got a rise in indebtedness, if we've got a rise in people having difficulty in servicing that debt... then maybe the banks are lending too much money or maybe they're not being as careful as they used to be in scrutinising the applications."
Source: http://news.bbc.co.uk/1/hi/business/6047070.stm

We have adopted internal compliance procedures to ensure that the business complies with current legislation, standards, guides and best practice. We recognise that the regulatory environment is not static and the industry may be subject to increased levels of regulation or monitoring from external bodies.

However, we believe this could strengthen the sector by requiring competitors to adopt the same high standards as those in place at Money Debt & Credit. In the interim, the Group's management has initiated plans amongst the largest UK IVA providers to lobby for creation of a body to administer self-regulation of the sector called the Debt Resolution Forum.