Debt management companies to face regulation?
Debt management companies to face regulation?
Monday 21st September 2009
The government is currently considering the possibility of imposing regulations on the debt management industry in order to curb the potential for people to be taken advantage of by less than honest companies.
It has been suggested that as a result of the increasing 'debt market', customer vulnerability has risen and some debt companies are offering deals that are not necessarily suitable for the person involved.
Business minister Ian Lucas, said that the focus of the proposed regulations would be to create a uniform industry that would allow a fair repayment of debt.
He commented: "Our aim is to help people take control of their finances and pay off their debts quickly and fairly. We want a system which is fair to everyone involved so that debt problems don't spiral out of control."
Sue Edwards, head of consumer policy at Citizens Advice, said that while there were ultimately well-run debt management companies out there, it was those involved in less than honest customer dealings that necessitates regulation.
She commented: "While we do see some good practice, we also see cases where people doing all they can are still being harassed by creditors and threatened with enforcement action, extra costs and added stress."
Total UK personal debt stood at £1,457 billion in July of this year.
News article brought to you by Debt1 – UK debt management specialists
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