Credit management and debt collection company Daniels Silverman has called for tougher regulation of Insolvency Practitioners (IP) in its response to the governments Consultation on Reforms to the Regulation of Insolvency Practitioners, which closed on 6 May.

Daniels Silverman believes the current regulatory framework needs strengthening and that an independent complaints body should be created with the power to review the fees and remuneration charged by IPs.

Carole Hughes, managing director, Daniels Silverman says:

“We have over 4,000 insolvency cases worth over £37 million in debt owed to our clients. We see regular instances where our clients are given a poor service by insolvency practitioners and feel strongly that as unsecured creditors our clients are not given the protection they deserve.

“Often when a business goes bust any dividends received by unsecured creditors (if there are any) are lower than they should be as a result of high IP fees and assets being sold under value, or because action is taken by IPs to favour the secured creditors. We welcome any changes that strengthen the regulation of the industry and police the fees IPs charge.”

“The complaints system needs to be conducted by a totally independent body. There should be accountability and possibly cost sanctions for IPs that are found to be in breach of regulations and code of conduct, or guilty of overcharging.”