Protected trust deeds come under Holyrood scrutiny

A Holyrood committee has issued a call for evidence as it begins a short inquiry on protected trust deeds (PTDs) as used in personal insolvencies. 

The move by the Economy, Energy & Fair Work Committee follows concerns raised during its recent scrutiny of the Debt Arrangement Scheme (Scotland) Regulations 2019 (DAS).

Witnesses were concerned that PTDs were being heavily marketed and recommended to people in situations when they were not the best debt solution. One debt adviser said: "We see them being mis-sold time and time again"; and the Association of British Credit Unions described them as "one of the biggest issues facing our sector over the past few years". 

The committee’s view on DAS was that debt services should be offered on the basis of an informed understanding of the client’s financial circumstances and best interests. 

Its new inquiry seeks "To ascertain the benefits and disbenefits of protected trust deeds as a viable debt solution in the interests of people in debt and their creditors and recommend if and how the Scottish Government and Accountant in Bankruptcy should proceed in any reform of the scheme."

It wants to hear the views of people living with debt and who have experience of PTDs, as well as from debt advisers and creditors. 

Click here to view the call for evidence. The deadline for responses is Monday 6 January 2020.