CAS responded and gave evidence to the Inquiry on Protected Trust Deeds.
We made the following recommendations.
- Much stronger regulation of the process of discharging people from a PTD, with the priority being on discharge where a PTD fails due to an unforeseen change of circumstances that makes the PTD no longer affordable. If the change of circumstances is permanent then we think discharge should be automatic, unless a creditor objects, in which case a fair and reasonable test could be applied to the objection (like happens with DAS). This could be achieved by a new process where agreement has to be sought from the AiB before “failing” a PTD and refusing discharge.
- The AiB working with the regulatory bodies that govern insolvency firms to have an outright ban on IPs accepting leads from unregulated lead generators or debt packaging firms.
- The AiB working with their equivalent in England (the Insolvency Service) to create an independent complaints body with powers to discharge or cancel a PTD that was not in the consumer’s best interests and that can make decisions on redress where necessary.