The insolvency industry in the UK may be investigated after a Scots MP urged the UK government to take action, claiming several administrators were cashing in at the expense of creditors.
Mike Weir, the SNP said: “After four years, Farepak victims have been left with pennies while the administrators have walked away with millions, and this by no means is an isolated case.”
He added: “People are actually dying before the insolvency gravy train comes to a halt. Part of the problem seems to be that the industry is largely self-regulated.
“What’s more, there is no independent complaints investigation procedure or ombudsman to adjudicate on malpractice – there are no questions over fees or delays.
“Just like (regulation of) the banks, current UK insolvency regulation has failed.”
However, the insolvency industry want to put a stop to any “misconceptions” and argued that the staffs are highly qualified professionals who are entitled to be fairly paid.