Improvements in quality of Debt Management plans

Posted in 'Dealing with Debt' by Richard Catlin

27 July 2010

The Citizens Advice Bureau (CAB) has invited Debt Management providers to pitch to be a single ‘preferred’ partner for consumers seeking help with debts.

The charity received 2.4 million requests for help with debts in 2009, accounting for over a third of all the enquiries it received. Whilst CAB staff are trained to advise people when a Debt Management Plan is appropriate, knowing which of the many debt management companies to choose can be bewildering.

Now, the CAB is inviting Debt Management firms to tender for the right to be the recommended provider. It is hoped that by requiring applicants to meet high quality standards before they can apply, it will not only mean that consumers will receive the expert assistance they need, but also that all companies will be forced to raise their own standards to compete.

The programme will initially be trialled for a year at around 100 of the CAB’s 394 branches across England and Wales, and is due to begin in October.

The big increase in the number of people seeking help with debts, brought about largely due to the recession has seen the debt management market flooded with new entrants.

A number of bodies including the Department of Justice (DoJ), and Office of Fair Trading (OFT) have already carried out investigations into debt management firms and their practices, aimed at giving consumers better protection and where appropriate, taking action against firms that are found to be operating outside of guidelines.

The OFT is yet to publish its wide ranging report, but it is believed that it will cover everything from advertising to disclosure of fees.

No matter what your financial predicament, you can get free advice about dealing with debt 24/7 on checkmyfile. Whether you’ve reached the stage where you’re seriously considering a debt management plan, or are simply suffering from a short-term cash flow problem, you’ll find honest, straight talking tips.

Free Debt Advice