Beware insolvency leads for sale

A member has recently told us of an approach by a lead generation firm, offering to sell leads for debtors with unsecured debt over $8,000. The lead generation firm has created their list by cold-calling debtors to see if they may be interested in a debt agreement or other form of insolvency procedure.

Members should not buy leads such as these. Section 11.5 of the ARITA Code states that members must not provide any inducements to any person or entity which may, in the view of a reasonable person, influence that person’s decision to refer an insolvency appointment.

Needless to say, these lead generation tactics have the potential to bring the profession into disrepute.