Too long waiting times for consumers at charitable debt counseling centers - reforms urgently needed

The Verein für Existenzsicherung e.V. criticizes the one-sided presentation of consumer advice centers and charitable debt advice agencies, according to which only free debt advice agencies are reputable. This statement is misleading, as even charitable debt advice centers do not work "free of charge" - they are financed by taxpayers' money. Although the services are free of charge for those seeking advice, they are financed by the taxpayer.

Long waiting times at charitable agencies
Many over-indebted people report waiting times of between several weeks and up to two years before their insolvency application is actually submitted to the court. Official figures confirm this:

One charity debt advice service itself cites an average of five months between the initial consultation and the start of ongoing advice.

In Hamburg, people seeking advice wait an average of 117 days for an initial appointment - with some state-recognized agencies even 181 to 204 days.

This is unreasonable for many of those affected, as their financial situation requires them to apply quickly. Commercial, professional debt advice centers - which also include lawyers, tax consultants, auditors and the Verein für Existenzsicherung e. V. - can usually complete the insolvency application within eight weeks and offer short-term consultation appointments.

Unequal funding leads to distortion of competition
While charitable agencies are automatically licensed in accordance with Section 305 InsO and are financed by the state, lawyers, tax consultants, auditors who are also licensed in accordance with Section 305 InsO and commercial advice centers have to finance their work through fees. The association criticizes that this creates unfair competition. The blanket assertion that paid advice is dubious is false and is detrimental to the rapid provision of help to over-indebted people.

Reform proposals
The Verein für Existenzsicherung e.V. demands:

Equal treatment of all licensed bodies under Section 305 InsO through state funding - this would also allow lawyers, tax consultants and auditors to work for debtors free of charge, which would drastically reduce waiting times.

Alternatively: abolition of all state subsidies so that all advice centers offer their services at market prices and are in competition. This would also be a huge saving for local authorities.

Appeal to politicians
"It is difficult for taxpayers to understand why over-indebted consumers can enter insolvency proceedings free of charge while the costs are passed on to the general public. Anyone who needs proceedings should at least be able to make a small contribution," says the association.
Despite the problems, which have been known for years, politicians have not yet acted. The association is calling on the Federal Ministry of Consumer Protection to finally create new, fair regulations in order to reduce waiting times and ensure access to qualified advice for everyone.

Verein für Existenzsicherung e. V.
Hermann-Löns-Str. 14
85757 Karlsfeld
Germany

https://vfe-schuldenberatung.de/

Herr Johann Tillich
0813193298

johann.tillich@vfe-tv.de

The Verein für Existenzsicherung e. V. - Your help with debts

The Verein für Existenzsicherung e. V. is one of the leading contact points in Bavaria for debtor and insolvency advice. We offer free initial consultations and support people in financial difficulties with expertise, experience and empathy.

Our free online debt analysis provides you with a quick and uncomplicated initial assessment of your situation - anonymously, securely and without obligation.

Our aim is to give people in financial difficulties a perspective. Through targeted information and individual support, we open up paths to a debt-free new start.

This release was published on openPR.