Which? pleased by debt management review

05/11/2009

Consumer group Which? has weighed in on the upcoming debt management sector review from the Office of Fair Trading (OFT).

Vera Cottrell, personal finance campaigner at the organisation, said that the investigation was needed in order to ensure that customer service levels were acceptable.

Earlier this week, the OFT said that it would be looking into the practices of debt management firms - in the context of significant industry changes that have taken place over recent years.

Rising levels of personal debt - with the typical household with outstanding unsecured credit thought to owe a total of over £20,000 - have increased money problems among the UK public and demand for debt management services.

Any malpractice found in the sector could bring formal action from the OFT.

Ms Cottrell said: "We welcome [the review], it is needed - especially now that the free debt advice sector is struggling to keep up with demand and more people are probably looking at getting debt advice."

EuroDebt also welcomed news of the OFT's review earlier this week.

Analysis from the firm showed that there had been a "major influx" of new debt management firms over recent years - and that "better clarification and supervision" would benefit the sector.

Tags; Income Worries and Debt, Recent Graduate Debt, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•