# Debt Management Companies head for the border - so what's changed?



## Kerrigan (30 Jun 2013)

Interesting how the DM's are now heading for the border so they can administer payments to their clients creditors.  What's the deal here?  Is this not going back to square one?


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## Brendan Burgess (30 Jun 2013)

This post seems a bit vague.

Could you elaborate a little on it.


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## Kerrigan (30 Jun 2013)

My OH worked for a DM for a period, no longer affiliated.  Most of the UK based DM'S at the time decided to withdraw their practices from the ROI because of high demands/rules from the CB.  Of late they have been advised not to administer payments to their clients creditors.  I am unsure why.  Surprised not to see mention of this here.  The repayments are now being made to creditors via UK channels.


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## marfsmal (30 Jun 2013)

Kerrigan, why do you think this is happening?


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## frostie (1 Jul 2013)

Kerrigan said:


> My OH worked for a DM for a period, no longer affiliated.  Most of the UK based DM'S at the time decided to withdraw their practices from the ROI because of high demands/rules from the CB.  Of late they have been advised not to administer payments to their clients creditors.  I am unsure why.  Surprised not to see mention of this here.  The repayments are now being made to creditors via UK channels.



The CB has not established any rules for the regulation of debt management companies. They are using the EU Payment Services Directive (PSD)to impose some sort of regulation, but PSD is completely inappropriate and is not fit for purpose. The CB wants a cash bond from DMCs of up to €120,000 to protect client funds, even though, in a case of insolvency of the DMC, the directive already protects client funds. The CB could authorise under the Small Payments Institution, where the company processess less than €3million per month, but have refused to do so, even though the company would automatically qualify as a Small Payments institution in the UK.  However, the UK authorities have other comprehensive legislation to regulate DMCs, as in their view, the process of debt management is exempt from the PSD. Square peg and round hole comes to mind, and to cut a long story short, it's easier for the Central Bank to close every Irish DMC than it is to regulate them. For this reason, we have opened a company in the north ourselves, and are now fully regulated by the OFT and soon, the Financial Conduct Authority, as the two bodies are being merged. We also have a full UK consumer credit licence to operate in the north. It's heavier regulation but I have no problem with being properly regulated - there are ulterior motives in play here also, including who the third party are, who will operate the Central Bank's new debt 'pilot scheme' which is exactly what debt management companies do already.


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## Gerry Canning (1 Jul 2013)

marfsmal said:


> Kerrigan, why do you think this is happening?


.........................................................................................
Our Central Bank is applying draconian rules on Debt Management Companies. THey are giving Debt Management Companies very little notice to get in line with Central Bank Ultimatum.
The central bank require companies to have 120,000 bond up front to central bank. this is not so in uk as uk know that this issue is exempt.

From a Debt Management Company view it is easier to move to say Newry and work away in Republic under Uk l supervision. The BIG ISSUE is that they can legally operate without the spectre of a Central Bank.
One I know of had NO ISSUE with their payments etc yet Central Bank TOLD them they would have them closed and would be named in the Press.

It doesn,t take a genius to figure what that would do to an honest business.!!
COMMENT; Nice to see our Central Bank knows more than the UK !!!
Methinks the only companies that may survive are their BIG friends.

I really DO try not to be cynical !!!

Also Jobs are lost in ROI .


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## Gerry Canning (1 Jul 2013)

I see Frostie has already posted a much better informed comment than mine.

I am getting more worried about our Central Bank.
I do not think they HAVE lost the plot, I think having proven themselves incompetent over the years , they have decided WHY CHANGE !!!

Sorry the Cynic in me is winning again !!!


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## marfsmal (1 Jul 2013)

Why would they be enforcing harsher rules on debt management companies, across the board? Is it really because they want to keep it small and tight and restrict it to who they know?

Don't they want these systems in place for when their PI Bill finally comes into law? Or do they want to also keep more of an eye on people?

This country is stinking.


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## Gerry Canning (2 Jul 2013)

marfsmal said:


> Why would they be enforcing harsher rules on debt management companies, across the board? Is it really because they want to keep it small and tight and restrict it to who they know?
> 
> Don't they want these systems in place for when their PI Bill finally comes into law? Or do they want to also keep more of an eye on people?
> 
> This country is stinking.


................................................................................................
Not so much enforcing harsher rules ; it is they are interpreting Payment rules different to other jurisdictions.
This means any company can set up a (nominal) base in Uk and operate under uk interpretation. 
This UK operation would still be tightly regulated under other headings rather than Payment rules.
Maybe as you suggest they THINK they are resticting to keep it small and tight. The Result is only the very BIg companies can do Debt
 in Roi.
The only system they want is one were it SEEMS they are doing a competent job. 

IF IT WAS A CASE THEY WANTED TO KEEP AN EYE ON PEOPLE , they would not manufacture a situation were they end up with NO CONTROL and Debt Comp is managed in another jurisdiction.

The WHOLE thing stinks of more Central Bank incompetence.


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