Debt Relief Orders UK Parliament gets it wrong
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The UK Government's most recent proposition for dealing with debt looks to be nothing more than dead duck. I would surmise that this is a badly constructed plan, badly executed, which will bring very little benefit to very few people.
The concept for DROs is really a trimmed down version of the more formal versions of debt management (IVAs and bankruptcy), which is enacted by the insolvency service.
The main issue is that the profile of a person who qualifies for debt relief order is so narrow that very few people would qualify for it. One friend within the industry stated that 'Only a tramp would qualify for a Debt Relief Order' and also that 'The range of organisations which can offer a Debt Relief Order is so limited that obtaining one may be very difficult.'
To be eligible for a Debt Relief Order, you need to meet four criteria which are: The inability to pay your debt, have less than 50 per month of disposable income, have less than 15,000 pounds of debt, and have assets of less than 300.
Owning assets of less than 300 (which is only the back catalogue of Iron Maiden on CD), would eliminate over 95% of the UK population. The combination of the other criteria would put that figure over 99.95%. So the government has created a debt solution which nobody qualifies for, which will bring limited benefit, and no real results.
Westminster in its wisdom has only empowered six organisations to be able to complete Debt Relief Orders, five of which are not for profit organisations. However, one is a commercial debt management company. How is this justified? Is this not a case of public regulation creating a monopoly?
Any private company who is appointed to offer Debt Relief Orders , will never make significant profit from completing a DRO as the fees are slow, it is certain most clients applying for a DRO will not qualify and they will be sold IVA's, Debt Management Plans or Bankruptcy services.
The Westminster government are not only acting in inefficient and wasteful manner, but in a way that seems commercially one sided, corrupt, and looking after the interests of only one company within the marketplace.
Article Source: Articlelogy.com
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