Recent Government Legislation Changes Prompt To Overhaul Debt Services has revealed plans to carry out a complete review and refresh of their debt solution products to ensure total compliance is met with the recent changes in Government legislation

EDINBURGH, Scotland, Sept. 20, 2013 /PRNewswire-iReach/ -- have announced today that they will be carrying out a full review of their Trust Deed services following the recent changes in Government legislation last week. The changes will mean a much improved customer journey for people wanting to enter into the Scottish Trust Deed debt solution.


The Scottish Parliament recently laid out new regulations that are aimed at improving transparency and reducing costs in order to address the returns that creditors who are associated with Scottish Trust Deeds receive. These new guidelines will help in ensuring that only debtors with serious debts can utilize this insolvency solution and improve transparency on how much of the money contributed by the debtor is forwarded to creditors.

The Scottish government has been concerned with the poor performance of Scottish Trust Deeds because only a third of all Trust Deeds pay a dividend to creditors.

According to Fergus Ewing, the Minister for Enterprise, Tourism and Energy said;

"These changes will address the two main problems associated with Protected Trust Deeds - rising costs and disappointing returns to creditors. Protected Trust Deeds will not serve as a sustainable debt relief solution for either creditors or debtors if more than half of all of the receipts are spent on costs. I am pleased that we have been able to make these changes and I look forward to them coming into force."

Frank McKillop, Scotland Policy and Relations Manager and the Association of British (ABCUL)Credit Unions Limited is of the following opinion:

"When a credit union member genuinely cannot repay their loan – which is made from other people's savings – it is wrong that the vast bulk of what they can afford to pay is so often pocketed by their trustee and not passed on to creditors. New measures to clamp down on abuses of Protected Trust Deeds and provide greater transparency for creditors are welcome and vital to make the process fairer."

The article was posted on on 2/9/13.

The changes were proposed after the government collected data from key stakeholders and responses from consultation exercises. The new laws will improve access to information by creditors through:

  • Minimum debt level to be reduced to £5,000 to qualify instead of £10,000
  • Ensuring that creditors know how much money trustees will charge before a trust deed is presented to them for ascension
  • Trust Deeds to be unprotected if the application can be fully repaid within 48 months
  • Excluding fact-finding fees and other pre-trust deed charges so that they can be treated as part of the total debt instead of a separate charge
  • Changing the way trustees charge their fees. Instead of charging an hourly rate, trustees will be required to charge an upfront fixed fee based on the funds they collect
  • Ensuring that the consent of creditors is sought before a trustee increases any fee
  • Ensuring that the social security benefits of the debtor do not go towards the contributions

A spokesperson for welcomes the new regulations; "We welcome the laying of the Regulations as, amongst other policies, provide for improved transparency in terms of the levels of Trustee fees and the exclusion of pre-trust deed fees. These particular policies will aid consumer protection and provide for a clean market in Scotland. We further welcome that no contribution can be paid by the debtor from their social security benefit towards their Protected Trust Deed."

As one of the most forward-thinking and ethical debt solution companies in Scotland, has been instrumental in ensuring their policies offer a fair and effective solution for all of their customers. Of paramount importance is ensuring the current trust deed process is fit for purpose, more efficient, and to ensure that the right balance is struck with regards to creditor and debtor needs.

The result will be a more efficient process overall and provide peace of mind for customers who find the Scottish debt solution process somewhat daunting. This review sits in line perfectly with the Government's proposals to standardise processes and to make Trust Deeds more accessible to those struggling with debt.

About : are one of Scotland's leading providers of Trust Deeds, which is a voluntary agreement that is entered into by any debtor who is unable to repay his or her debts. Scottish Trust Deeds give creditors who consent to this insolvency option a higher right to recover their funds from debtors; creditors who do not consent to trust deeds don't have a higher right to seek recovery of their funds from debtors. Once protected, all creditors are bound by the trust deed, and can take no further action against the debtor provided all the terms are adhered to. When the Trust Deed is completed, creditors cannot pursue any unpaid debt because it is discharged.

Media Contact: Owen Knight,, 480 243-8054,

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