Survey of Scottish debtors, released by Protected Trust Deed advice website, www.Trust-Deed.co.uk

New research shows that Scottish debtors are being misled by companies offering Protected Trust Deed advice and services. Trust Deed news.
By: Liberty
 
Oct. 12, 2010 - PRLog -- A survey of Scottish debtors, released today by Protected Trust Deed advice website, www.Trust-Deed.co.uk, reveals serious concerns about the Protected Trust Deed industry in Scotland.

Incompetent advisors, misleading advertising and rip-off companies were identified as serious issues within the Trust Deed industry:

•   97% demand that rip-off Trust Deed “agents” charging unnecessary upfront fees be closed down.  
•   94% believe debt advisors should be professionally qualified.
•   94% call for heavier regulation of the Trust Deed and debt advice industry.
•   48% have read incorrect or misleading advice on Scottish debt advice websites.
•   47% say a debt advisor gave them incorrect or misleading advice.
•   27% describe service from regulated Scottish Trust Deed companies being either “poor” or “extremely bad”.

(Results are presented in terms of respondents that expressed a definite opinion).

The results follow recent damning criticism of the “debt management” industry by the Office of Fair Trading.

The survey examined the experiences of actual Scottish debtors and found that participants typically had very serious personal debt problems leading to consideration of a formal insolvency (such as a Protected Trust Deed) to deal with otherwise unmanageable debt levels.

A spokesperson for the Trust Deed website, Andrew Graveson, commented, “The Protected Trust Deed industry may have felt that the Office of Fair Trading’s recent criticisms of the debt management industry were not their concern. This survey confirms the existence of exactly the same problems with protected trust deed advice and delivery”.

Three major issues were identified by the survey:

1.   Incompetent advisors: 94% of those questioned believed that debt advisors should become professionally qualified. No qualifications are currently required to be a debt or Trust Deed advisor, with most advisors actually holding no relevant qualifications whatsoever. 94% felt that Trust Deed companies should be more heavily regulated. Regulation might include a requirement to ensure that only properly qualified and trained persons provide advice to financially vulnerable clients.

2.   Misleading advertising: A large proportion of websites promote Protected Trust Deeds but most emphasise only the potential benefits and fail to inform readers about the drawbacks, many of which can be serious. Despite the abundance of websites, 78% of the survey sample expressed the view that insufficient good information on Protected Trust Deeds exists, or that good Trust Deed information is difficult to find.

3.   Rip-offs: Some debt advice “agents” charge a debtor high upfront fees to “process their case” before selling the potential case to an actual Trust Deed company. Such upfront expense is entirely unnecessary for the debtor, will cause delays and potential legal risks to them and often leads to problems later when misinformation from the agent comes to light. 97% of survey-takers felt upfront fees from agents should be banned.

The survey response was positive about Trust Deeds in principle, with only 18% of respondents feeling that a Trust Deed does not strike a fair balance between a debtor and their creditors. 89% of those who expressed an opinion stated that, overall, they had made the right decision to go ahead with a Protected Trust Deed.

Graveson commented, “Anyone worried about debt should not be put off a Protected Trust Deed by the findings of this survey. It is clearly the best option for some people with serious debts. What the survey makes very clear is that a very careful choice of debt advisor, along with full consideration of other debt solutions, is absolutely essential”.  

However clear frustration and anger exists about the way parts of the Trust Deed industry currently treats their clients. Survey-takers suggested:

•   “Much stronger methods of monitoring the whole system, from agents through to IP’s (insolvency practitioners). They seem to be running the Trust Deed system, not the government/regulatory bodies”.
•   “The agents providing initial consultation should be qualified and provide clear communication in writing and detailed accounts of their activity in relation to the creation of a Trust Deed”.
•   “Having a more caring approach to the debtors and a slightly more flexible payment regime to allow for more things happening without having to resort to sequestration (bankruptcy)”.
•   “Clearer laid out information with plus and minus options against all available options”.

Kenny Craig, Director of Recovery Services at RSM Tenon, a company which contributes to the forum commented: “It is very worrying that many people seem to be feeling let down by those they have gone to for advice.  I would urge anybody looking for free trustworthy advice to be careful to seek out a reputable organisation.”

Mark McFadyen, Director at Philip Gill & Co (Scotland), who also partakes in forum question and answer sessions said: “There simply is no need to pay any kind of upfront fees prior to starting a trust deed. By going directly to a reputable insolvency practitioner a great deal of money, time and hassle can be saved”.

Claire Middlebrook, Director and Insolvency Practitioner at Henderson Loggie which contributes to the trust deed forum: “It’s vital that vulnerable debtors can easily access accurate and useful information about trust deeds. The Trust-Deed.co.uk forum is a convenient way for debtors to understand the whole process both pre and post trust deed”.

For further information on the Protected Trust Deed industry visit http://www.Trust-Deed.co.uk, where you will find a free public web forum available to anyone in Scotland worried about debt. The Trust Deed forum offers advice and guidance from a panel of three reputable Trust Deed companies, a professionally qualified debt advisor and a financial advisor.

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Scottish trust deed and protected trust deed advice forum. Advice from experienced trust deed professionals, plus news and information on Scottish trust deeds. Your trust deed questions answered.
End
Source:Liberty
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Tags:Protected Trust Deed, Protected Trust Deeds, Trust Deed, Trust Deeds, Scottish Trust Deed, Scottish Trust Deeds
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