StepChange responds to personal insolvency framework review
4 August 2023
StepChange Debt Charity is pleased to see the Insolvency Service update today, following its call for evidence on the personal insolvency framework, and its commitments to reform this sector.
Responding to the government response, Vikki Brownridge, CEO at StepChange Debt Charity, said:
“We welcome the Insolvency Service’s response today on reforming the UK’s personal insolvency framework, and are pleased to see it recognise existing shortcomings which make accessing and navigating insolvency options a challenge for financially vulnerable individuals.
“It’s vital that insolvency solutions are accessible and provide a safe route out of debt, leading to long-term good outcomes for consumers. The current framework leaves consumers vulnerable to harm from unaffordable fees, a lack of flexibility and aggressive commercial practices. The mis-selling of Individual Voluntary Arrangements (IVAs) is a particular area of concern that needs urgent action.
“We look forward to working closely with the Insolvency Service as it looks to make structural reforms to the personal insolvency landscape. In the context of the cost of living crisis, in which people’s financial resilience has been eroded, insolvency must be fit for purpose in providing effective debt relief.”