Protected Trust Deeds

 

About the Inquiry

Background

The Committee has agreed to carry out a short inquiry on Protected Trust Deeds (a bankruptcy-related statutory debt solution). 

This follows on from 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. 

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

Remit of the inquiry

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. 


Evidence

The Committee launched a call for views on 22 November 2019. The deadline for responses is Monday 6 January 2020.

Read the call for written views 

 
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