The Association of Professional Debt Solution Intermediaries (APDSI) aims to help intermediaries and brokers offer a range of debt solutions to financially disadvantaged clients, whilst complying with regulations on consumer credit and debt advice.
It has been created by several key players in the consumer credit and debt solution sector, who believe that financial intermediaries need assistance in complying with the greater focus on consumer protection being applied by Government.
Credit industry compliance expert, Alasdair Warwood is secretary general of the association. Founding members include Kevin Still, a director of the Pentagon Group which provides a range of debt solutions and Melanie Giles, a licensed insolvency practitioner with specific expertise in dealing with financially distressed consumers.
A not-for-profit organisation, APDSI aims to represent FSA-authorised and OFT-licensed intermediaries wanting to refer clients in financial hardship to licensed and competent debt solution providers it approves.
“Debt solutions, including Debt Management Plans (DMPs), IVAs, Protected Trust Deeds (Scotland) and Bankruptcy are all services that intermediaries want to be able to offer to financially challenged clients” explained Alasdair Warwood, secretary general of APDSI. “But if they do not currently hold a Consumer Credit Licence which includes the appropriate debt counselling category they will not be able to offer these services. Plus it is not always clear which are the best debt solution providers with which to work.
“One of our goals with APDSI is to provide intermediaries with the facility to obtain the appropriate categories of licence as well as give members information to enable them to keep up to date with matters affecting the debt solution industry. In particular we aim to help them ensure they make compliant referrals and introductions to licensed and competent debt solution providers.”
The Association will represent the views of its members to regulators and others on matters of common interest regarding the regulation of the debt solution intermediary market, as well as provide a forum for the continuing education and professional development of members and their employees and agents. As such, it aims to work closely with the trade associations representing debt solution providers and with
recognised professional bodies representing insolvency practitioners.
Melanie Giles commented; “It is important that properly licensed intermediaries have confidence to refer cases to the most appropriate debt solution provider, including Insolvency Practitioners, for clients with both personal and business debts. On-going education and provision of resources to deal with non-standard cases is an important objective of the association as the intermediary membership grows.
“Given that the debt arena is under review and change is likely, it is vital that we work together to ensure that all interested parties are able to provide the best level of advice, and have access to professionals who can provide this.”
Crucially APDSI also aims to provide a forum for the compliant promotion, development and diversification of the debt solution intermediary market, as well as promote best practice and assist members in helping their clients who may be facing financial difficulties.
“Recent OFT actions have clearly signaled an increase in regulation for the protection of consumers facing severe financial difficulties”, concluded Alasdair Warwood. “There is a clear desire from the reputable companies in the market to be able to offer consumers the best possible advice and support and APDSI will help intermediaries achieve this, whilst continuing to be able to operate profitably.”
