Thursday 19 October 2017

Vincent P Martin: Debt experts can't be allowed to cherry-pick who they'll help

'WHO pays the PIP?" is the question on everyone's lips. Prohibitive figures are being bandied around suggesting Personal Insolvency Practitioners (PIPs) will charge exorbitant fees for helping people to free themselves of unmanageable debt.

In addition, a frightening scenario has been outlined in which some PIPs may prioritise more lucrative clients in financial difficulties because they have assets or income to trade. This would amount to cherry-picking, which is contrary to the intention of the legislation.

Reports suggest that complex deals could mean fees climbing to €20,000 over the course of a five-to-seven-year term of the debt arrangement, but they are wide of the mark. Such excessive figures will make access to the insolvency process impossible for many distressed borrowers.

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