There are no specific laws governing companies offering debt advice or debt management.
This could change following a wider review by the Law Reform Commission and an investigation by the National Consumer Agency.
However, legislation will not be on the statute books until 2011 at the earliest.
If your business is running into difficulties with creditors, you might consider hiring a debt-management agency to negotiate on your behalf with those to whom you owe money.
This may sound like an attractive option, but it is important to remember that there are costs involved when you use this service, so make sure you find out about all of these before you sign any agreement.
Most debt-management companies have an initial charge, which can be as much as €500, as well as ongoing monthly fees.
Typically they will also charge a monthly fee to take over and manage your agreement with lenders.
This can be in the region of €40-€50 or more a month. But if you have a large number of debts and the debt-management agencies can strike a deal with your creditors, this can represent good value for money over time.
The best advice is to get the full price list during your initial consultation with the debt-management agency and negotiate a deal that you can afford.
Debt-management companies don’t have to follow the same complaints procedures as regulated firms.
This means that, if you are not happy with the service you receive, you will not be able to refer your complaint to the Financial Services Ombudsman.
The Consumer Agency offers good advice on complaints on its website - see link below.
Useful links
Financial Ombudsman http://www.financialombudsman.ie/
Itsyourmoney.ie: making complaints
