A trade association for the debt management industry has been approved from the Office of Fair Trading (OFT), it has emerged.
In news which may be of particular relevance to insolvency practitioners, the Debt Managers Standards Association (Demsa) has achieved OFT confirmation that it meets the required standards.
This means that customers of its four current member firms are guaranteed to receive a better standard of service than the law requires.
Among the things that the companies have agreed to is the protection of all clients' deposits or prepayments by the use of separate ring-fenced accounts and an obligation that they will use fair terms and conditions, as well as provide clear written pre-contractual information for customers.
"We are delighted to have achieved OFT code approval after working closely with the OFT and members to ensure the highest standards for consumers. We are especially pleased to have become only one of eight trade bodies to currently have gained this approval," stated Demsa chairman Michael Land.
In other news, a new ethical code was recently published by the Insolvency Service which is designed to help people with insolvency jobs to undertake their duties to high standards. It will come into force in January next year.
