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LATEST NEWS & EVENTS Proof of income 'vital' to securing debt help  People facing personal insolvency must be forced to prove their income before engaging in a debt management plan (DMP), it is claimed. R3, which represents professionals in both the personal and corporate insolvency sectors, believes the debt management market is failing to take the necessary steps to ensuring DMPs will work. It comes the Office of Fair Trading launches a 12-week consultation on revised debt collection guidance. R3 says more than half of its members have seen a DMP fail because the level of debt simply too high for it to have been a viable option in the first place. One in five (22 per cent) of individuals in a DMP have reported that organisation that set it up did not ask for proof of income or expenditure beforehand, the insolvency body adds. R3 president Steven Law commented: "Unlike other insolvency procedures, DMPs are not regulated by the Insolvency Service and we believe that the OFT's regulation is insufficient to tackle bad practice in the market. The organisation is calling for DMP providers to be regulated by the Insolvency Service and to the same standards as Insolvency Practitioners in order to deter bad practice, he added. Posted by Gaby Hamerton 
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