Creditors were today criticised by conference delegates for their apathy in a recent consultation by the Accountant In Bankruptcy (AIB) on the future of protected trust deeds (PTDs).
Of all lenders currently operating in the Scottish market, Lloyds Banking Group was the only creditor to respond to the consultation of all the major banks alongside one submission from an unnamed creditor representative.
Speaking at this year’s Insolvency Today Scotland conference, Rosemary Winter-Scott, agency chief executive at the AIB, said the aim of the consultation was to ensure that the right balance was struck between creditor and debtors.
She explained: “We looked at a whole range of changes. There were 47 responses to the consultation, including R3, ICAS and the Insolvency Practitioners’ Association (IPA). However, there was only one creditor and one creditor representative among the responses.
“There were mixed views on the whole of the guidance. The government’s response will be coming in the next few months.”
However, Euan McPherson, head of debt recovery at Lloyds Banking Group, said he understood that there would have been an additional response from the Royal Bank of Scotland (RBS) had there not had been an internal change of senior staff.
He added: “I am keen that more creditors are involved. When you overlay the Scottish element of [insolvency], people just get confused and wish it would go away.
“[Scottish insolvency] has been a big part of the rethink since the integration of Lloyds Banking Group. We are now tackling insolvency in the bank.”
McPherson said that the Banking Group has now moved a significant proportion of its debt recovery operations north of the border in an attempt to ensure greater interaction with parties involved in Scottish insolvency, including some of those functions that were previously handled by Lloyds TSB in England.
By Joe McGrath, in Glasgow