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.
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 was Monday 6 January 2020.
Read the call for written views
Read the written submissions
Visits and Events
On 21 January, the Committee held a focus group in Inverclyde Community Hub, Greenock.
Report
The Committee published its report on 21 May 2020.
In advance of his response to the Committee’s report following its inquiry into Protected Trust Deeds, the Minister for Business, Fair Work and Skills wrote to the Committee with a general review of debt solutions.
The Scottish Government responded on 15 October.