1 in 6 of our customers who would benefit from an insolvency solution won’t take one – and it’s because of the public register

As you probably know, the public individual insolvency register lists the names and addresses of everyone who has gone bankrupt, or in an IVA or a DRO and, in Scotland, a Trust Deed.

We’re campaigning for the public register to be abolished – and replaced with a private register, accessible to prospective lenders and to relevant traders.

This is because we believe a public register perpetuates an outdated stigma about people who have sought help with problem debt.

Although they shouldn’t have to, many people do report a sense of shame associated with problem debt – a public register of people who are insolvent only serves to heighten that shame, delaying engagement with debt advice and adding to the mental health impacts that problem debt can bring.

We know when people do seek help with their debts, their discomfort with appearing on the public insolvency register can often put them off beginning an insolvency solution, even where that might be the most suitable way for them to deal with their debts.

We took a look at what customers tell us when they start a debt solution.

Since 2019, just over 2,000 of the customers we’ve advised to take an insolvency solution have told us they didn’t want to proceed, as they didn’t want to appear on the public register. That’s around 1 in 6 of all the customers we advised to take an insolvency solution.

“The register has stopped me from being able to pay off my debt quicker, as it’s seen so negatively when you’re on the list” – a customer who turned down an insolvency solution this year.

Multiply these figures across the country, and there could be tens of thousands of people every year who are discouraged from taking their most suitable route to financial wellbeing – all because of an outdated and stigmatising practice. We know that as a sector we should be doing more to reduce the barriers to seeking debt advice; to encourage people to seek advice early, and without fear of being judged. The public individual insolvency register does just the opposite. We think it’s time for change.

Do you agree? Why not show your support by signing our petition or sharing this blog on social media. Here’s a suggested tweet: There’s #NoShameInDebt – I’m supporting the campaign to abolish the public individual Insolvency Register.