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10 | Debt management
Setting the
standards
Andy Moody of TCF Debt Solutions argues that the
time is right for debt solutions providers to issue a
clear set of standards or code of conduct to act in
the best interests of intermediaries and their clients
H
ow many debt advice companies are open to censure though his compliance regime not offer a full range of services or in some
there now? It seems that every day, I or even retrospectively by a disgruntled client cases plainly of more value to them in fees than
am reading about a new start up who discovers he might have gone down a value for the customer. However, at a time
aiming its services at the more suitable route. when so many people need help with debt and
intermediary market. Although I Currently, there are no written standards its consequences, it is vital that intermediaries
don’t have any figures, it seems that before long that any debt advice firms have to adhere to are seen to be on the side of the angels.
there will be one for every intermediary in the over what type of advice they offer, whether it
country! is a ‘whole of market’ scenario with more than Move forward
Of course, there is no problem having as one potential avenue to explore, or whether the By putting in place some simple statements of
many as the market can stand, the important intermediary having introduced the case is still intent that describe the extent of the services
question is whether they are all doing the same responsible for the advice. Potentially, it is a offered and the standards that their customers
job? Knowing that there are so many choices of minefield and in a young market like this, can expect, the industry can move forward in a
‘new best friends’ to help intermediaries is fine unless there are some signposts or minimum way that complements existing compliance
as far as it goes but how are intermediaries standards adopted then there is no doubt in my understanding in relation to treating customers
supposed to differentiate between all the mind that not only will some intermediaries fairly, while at the same time looking to mirror
competing siren calls from the increasing find themselves in trouble but more future compliance needs by working closely
numbers of providers to find a proper match? importantly clients will be seriously with a future regulator.
The trick is how to find one partner who will disadvantaged. In no particular order these are the kind of
be a genuine helpmate and not only provide a areas which need to be addressed.
new line of income opportunity but will ensure Code of conduct
that the client has the best advice and therefore TCF Debt Solutions is working on a code of Choice
enhance the intermediary’s own treating conduct which we will be publishing on our There are many different types of debt help.
customers fairly regime. website and which we hope will act as a catalyst DMPs (Debt Management Plans), IVAs
to ensure that no matter which debt advice (Individual Voluntary Arrangements),
The right choice company an intermediary might go to, he or Bankruptcy and for company debt, there are
There are plenty of providers who do a good she can be assured of receiving a level of service debt restructuring and CVAs (Commercial
job but what does the intermediary look for on which he can rely with confidence. Voluntary Arrangements). All of these are
and what questions should he ask? Picking the Naturally some providers are going to be relevant to clients and depends totally on their
wrong horse by introducing clients to the uncomfortable with a code of conduct because individual circumstances. What is important is
wrong advice could well mean leaving himself their offerings are weak, either because they do to see that all clients are given the best chance
July/August 2009 Mortgage Introducer www.mortgageintroducer.com
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