I always think its better going direct to a firm that arranges trust deeds and not through an introducer!!

Paul

To all expert contributors-What are the benefits of setting up a trust deed or bankruptcy via an introducer, to either the client or the IP?

I was led to believe the fees would be less because the introducer/packager would have reduced the admin burden on the IP.

Is there a preference from the IP perspective to deal with everything in-house from start to finish or to have a packeaged case presented?

Hi Pamjo

We discussed introducers on a previous thread, please see some extracts below.

Intermediaries can be advisers at a Citizens Advice Bureau, Money Advisers, this website acts as an intermediary in some circumstances, debt management plan companies that feel their client would be better served by a trust deed, or agencies specifically marketing their services to find trust deed cases for example.

On this website we hear good and bad things about intermediaries (as we all hear good and bad things about actual providers of trust deeds as well).

I think some things that might help people to get the right advice in the first place, and to find their way to a good provider of trust deeds, are:

1 - Insist that any adviser you speak to about debt (at any type of firm or agency) tells you what their professional qualifications are. You may be surprised to know that, unlike almost every other aspect of financial services, there is no requirement to hold a professional qualification to provide advice on debt or trust deeds. Do you want to take advice from someone who lacks qualifications to prove they can properly provide it?

2 - Ask loads of questions and don't sign anything until you're happy with the answers. On the more important issues you may want to get written confirmations before you sign a trust deed (equity in a home, what will happen to extra income, or your car for example).

3 - If you're dealing with an intermediary, don't fully rely on their answers when you come to sign a trust deed. There are a small minority of operators out there that will tell people pretty much anything in order to get them to sign up. Some of the things we hear when people call our advice line are shocking (beyond what gets written here on many occasions). The danger is that someone is concerned about something, a dodgy intermediary tells them what they want to hear, so they don't then ask the trust deed provider about it. After they've signed the trust deed they find out that what they were told was wrong... but it's too late for anyone to do anything about it.

4 - Are you getting advice or a sales-pitch? Good advisers will tell you about all of your options, may suggest one course of action might be preferable in some cases, and will then give you space to make a decision that you feel is right for you if that is what you need. They will also tell you about the negatives of a trust deed as well as the benefits.
Salespeople will be pushing you to make a decision quickly, sign and return paperwork quickly and so on. They'll also focus on the positives of a trust deed while making little effort to tell you about the possible negatives (all debt solutions have pros and cons).
If you're getting a sales-pitch do a runner and find someone who is professional enough to provide you with proper advice and the time you need to make a considered decision.

5 - Choose a trust deed firm that you have a reason to trust. Maybe someone you know used a firm that did a good job, you've read positive reviews about a firm, or you've spoken to two or three firms and one of them stood out as being more professional and helpful. Whether you are approaching a trust deed firm directly, or being referred to one by an intermediary, remember that you're not committed unless you sign the trust deed documentation... so a bit of effort to make sure the firm you are with has given you reason to trust them makes sense.

I dislike introducers and while they can often make an IP's life easier by packaging things up nicely for them,they arent worth the money and are less likely to be bothered whether your income and expenditure etc is set at a level which you can maintain throughout the trust deed,because after they have their fee they dont have anything more to do with you.

Always go directly to an insolvency firm that has its own IP's.

Paul

thanks both-again!

TDA-I remembered seeing these issues discussed before, all good advice in dealings with introducers.
I have the opposite of being rushed into decisions and wonder if the person who initially advise actually has any experience or is keeping up to date. There are some worrying discrepancies between information from him and posts here.

I was hoping to hear the perspective of the IP as well, in terms of what they gain/lose when dealing with introducers or packagers.

I think one of the benefits to an IP would be that they have a qualified case and that they have had most of the ground work already done for them, such as income and expenditure and list of debts and assets and sometimes the entire trust deed proposal.

Using an introducer will probably save them a little bit of work and time as this part of the process has already been carried out, but you would think the case worker or IP goes over the figures again with the client.

The introducer will charge a fee for this work and sometimes we know charge the client a fee as well.

Maybe one of our experts can comment on their thoughts as well

Thank-just to clarify, this is true for a bankruptcy application too?

There are plenty of companies that will charge a fee for helping with bankruptcy Pamjo, including introducers.

Introducers can be split into a couple of categories. Some are paid by the insolvency firm that purchases the work they did from them. Others receive this same payment, and charge the client for the work done as well.

People will take their own view on introducers in general, but we'd certainly advise that people don't reach into their own pockets to pay upfront fees (to any party) when looking to set up a trust deed or sequestration.

If you're concerned about advice you're being given, I'd suggest that you walk away and find a new source of advice. At a very minimum, ask the adviser what qualifications he/she has to advise you.

It is not the idea of introducers that is wrong, it is just some of the practices. If you use this website as an introducer, or citizens advice bureau etc, they will gather information for the IP. However, they do not take the place of a meeting with the actual insolvency firm. The IP's on this site still visit potential clients, and make sure that everything is clear and in writing before the Trust Deed is signed. This is in stark contrast to some introducers who actually do all the signing up, do not have the knowledge of all options available, and only when the Trust Deed is signed do you here from the IP. The IP is relying completely on the information from the introducer, instead of clarifying it for themself. In my opinion that is not a good start - always get a face-to-face meeting with the IP firm, even if an introducer is involved.

Thanks everyone - it's more a question of which one with which qualifications then as opposed to an absolute do or don't go through an intermediary?

That's really one for you to weigh up Pamjo; as you'll see in this thread there are plenty of opinions on the subject.

Hi all

I think Shona makes a really good point, hence the reason why I hate the idea of any firm posting out important documentation when there has been no face to face meeting with the IP or anyone from the IP firm.

Our guidance states that all information provided by referrers should be verified. It also states that the Trustee or a member of their staff should ALWAYS offer to meet the individual personally.

My concern would be a scenario where a third party referrer has spent substantial sums on advertising or whatever and needs to recoup those sums. How independant can the referrer be? It is likle the bad old days of PPI and endowment policies as people may find themselves in a situation where they have been 'sold' a product which best suits the company and not the individual.

Mark