Insolvency reforms are 'overdue'

Reforms to the insolvency industry, called for by the Office of Fair Trading (OFT) are crucial, but overdue, according to many working in the printing industry.

In a report published by the OFT, it urged "far-reaching reforms".

The call follows a study that shows in nearly a third of administrations and liquidations, the system did "not work in the best interests of the creditor".

And it said the current regulatory system could not protect the interests of small creditors.

The OFT called for a number of changes to the industry, including a review of IP fees and actions, fines, and for creditors to be returned overcharged fees.

But to many in the printing industry, the reforms, although welcome, offer little.

Greg Nicholls, managing director at Response Envelopes, said the Government should have taken responsibility earlier.

He said: "Much of the damage for a business such as ours has happened already because we have to compete with companies that have ditched their debt and come back much stronger."

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