Creditors encouraged to use appropriate debt solutions

25/02/2010

Debt solutions
could swing more in favour of the debtor as a group of charities have called for creditors to take the difficulties people face into account when claiming back money.

In a report from AdviceUK, the Institute of Money Advisers, the Money Advice Trust and Citizens Advice, creditors have been encouraged to use the "right organisational structure" when collecting debt.

A structured debt management plan could be the best solution for some people in debt.

Kevin Brennan, consumer affair minister, is set to speak at the report's launch.

Mr Brennan is to welcome the advice contained in the report and will say: "It identifies a number of practical steps that can improve debt collection practices. It is absolutely vital that when people are struggling with debts they get the advice and support they need to address their difficulties in a responsible way."

The report also calls on creditors to achieve the right motivation for debt collection staff, develop and encourage clear communication, offer information and support and be willing to carry things out in the best way possible.

Leading debt solutions provider, EuroDebt is welcoming the initiative in giving consumers the support they need when they are already struggling.

"For many of our clients, they come to us when things have already spiralled out of control and this often means they have found it difficult to communicate with their lenders" confirmed Kevin Still, director, EuroDebt.

"So anything that helps provide clarity for that communication can only be a good thing," added Mr Still.

Posted by Fiona Smith

Tags; Debt Management and Banking,

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