The Debt Resolution Forum (DRF) has announced new measures for its members to undertake to improve standards in the debt management sector, following a consultation launched by the Office of Fair Trading (OFT).
The trade body has brought in a new membership category for lead introducers, which invites them to volunteer for annual monitoring by the Insolvency Practitioners Association (IPA) at their own cost, so that DRF members can ensure they have a bank of trusted lead introducers they can use.
The DRF is also planning to enhance its Cert DR industry qualification by introducing annual training, known as a continuing professional development scheme, which Cert DR holders must complete to a minimum standard to maintain their certificate.
Also being considered is the addition of an assessed module to the Cert DR qualification to make it a full Diploma.
The measures follow the recent launch of an OFT consultation on updated debt management guidance, which began after a compliance review found widespread issues of non-compliance with regulatory requirements in the debt management industry, particularly the fee-charging sector.
In an open letter published today in response to the consultation David Mond, chairman of the DRF, said: "We know that the OFT is going to be holding debt solutions providers responsible for ensuring their lead introducers are appropriately licensed and compliant.
"DRF recognises this could be a huge burden on firms and, to that end, we have introduced a new category of membership for lead introducers."
David Kerr, chief executive of the IPA, told Credit Today that much of the detail around the monitoring of lead introducers was still to be decided, and suggested any fees paid for annual monitoring would be absorbed into the DRF’s membership costs, rather than charged separately after membership fees were paid.
He said: "It is still early days, some detail will have to be resolved but we already began last year a programme of monitoring for DRF members, so this would be done in accordance with the current arrangements."
Mond has also encouraged DRF members to submit views and opinions on the consultation to the members-only forum on its website ahead of next week, when it will begin feeding back initial views on each section of the consultation to the OFT.
For further information visit the Debt Resolution Forum website
