Carrington Dean is one of the first Scottish debt help companies to agree to new Protected Trust Deed protocol.
Insolvency practitioner (IP) Samantha Warburton takes on the role of trustee for all Carrington Dean Protected Trust Deeds and is proud to agree to the new protocol, designed to support both those in debt and the people they owe money to.
The pledge comes after an inquiry into Protected Trust Deeds by the Scottish Government Economy, Energy and Fair Work Committee in January last year.
While a review of all debt solutions available in Scotland has yet to be conducted the inquiry found that changes should be made to reduce the number of failed Protected Trust Deeds across the country.
The new protocol sets out non-statutory changes to operational processes in a bid to promote good practice and enable trustees, like Samantha, to better manage both client and creditor expectations.
Changes introduced by the protocol include:
• Where practical, ensuring an interim dividend is paid to people or companies owed money after month 12 from the date the trust deed is granted and quarterly thereafter. Carrington Dean began incorporating early returns to creditors in their Trust Deed proposals in April 2020. In fact, they pay dividends to creditors in month 3.
• In the unlikely event a Trust Deed fails, the Trustee must seek the Accountant in Bankruptcy’s view if the Trust Deed should continue.
• In the event that the Trust Deed is to come to an unsuccessful conclusion, the Trustee must gain the AIB’s consent to withhold the debtor’s discharge. Trustees must only accept referrals from FCA-approved lead generator firms.
Others encouraged to implement new protocol
There’s no legislative or regulatory requirement for trustees to follow the protocol, however, the Accountant in Bankruptcy Scotland is encouraging others to follow suit and implement them.
Speaking of the new protocol, Samantha said: “Carrington Dean has been actively involved in the recent inquiry and discussions surrounding Protected Trust Deeds and we welcome this new protocol.
“As Scotland’s debt specialist, Carrington Dean has long been a champion of improving debt support for people across the country. The new protocol will allow us to continue to do our best and support people in their time of need – especially as we all continue to adjust to life after lockdown and recover from the financial impact of the pandemic.”
The Protected Trust Deed protocol will commence on October 1. Further information is available from the Accountant in Bankruptcy here.
