The consultation paper “Debt Management Schemes—delivering effective and balanced solutions for debtors and creditors”, published on 18 September 2009, looked at the current operation of the debt management market. It sought views on whether any changes were needed in this area and, if so, what those changes should be.
The consultation paper set out three broad options. First, to continue with the measures currently under way to raise awareness about current schemes and enforce existing rules with operators. Second, to improve current schemes without regulation, possibly through the introduction of a protocol. Or third, to implement the Lord Chancellor's powers to approve debt management schemes contained in Chapter 4 of Part 5 of the Tribunals, Courts and Enforcement Act 2007.
An initial impact assessment was published alongside the consultation paper which considered the potential effectiveness of all of the options contained in the consultation paper.
The responses to the consultation are currently being considered in detail to inform the Government's decision on what action is appropriate and necessary. This decision will be announced in the Government's response to the consultation which will be published as soon as possible.