EuroDebt welcomes OFT consultation on Debt Management Guidance

June 2011

The UK’s leading provider of face to face debt solution services, and founding member of the APDSI*, EuroDebt Financial Services, has welcomed the publication this week of the OFT's revised guidance for the debt management industry, for consultation.

Vance Parsons, Director of EuroDebt said "We fully support any moves to improve the quality of service provided to indebted individuals and welcome the clarification offered by the proposed new guidelines. Indeed many of the practices laid down for consultation are ones we have applied within our business for a number of years. Our model is relatively unique because we visit all our clients in their home, at a time to suit them. We believe this enables us to get a much better picture of their circumstances.

"We are particularly pleased to note that one of the key points in the guidance is transparency around services on offer and fees charged. In our 15 years of operation, and as the leading provider of face to face debt solution services, EuroDebt has always been committed to providing a fully transparent service. This is further evidenced in our role as founder member of the APDSI, a not for profit organisation committed to helping intermediaries and brokers offer a range of debt solutions to financially disadvantaged clients, whilst complying with regulations on consumer credit and debt advice.

"The clarification of the licensing regime and the distinction between lead-generators and those actually providing a debt solution is certainly welcome," Vance Parsons continues. "We have an established network of licenced introducers and as such conduct full compliancy checks that exceed the requirements laid down in the updated guidance.

"EuroDebt also welcomes the emphasis between different legal jurisdictions to take account of the residency of indebted individuals, for example in Scotland. Again this has been standard operational practice for EuroDebt for many years. Added to this EuroDebt has been using the Common Financial Statement; incorporating the Financial Ombudsman Services (FOS) in its complaint policy; applying a clear vulnerable client policy as part of its Client Charter; and has been using the MALG Debt and Mental Health Guide since its inception.

"One of the areas where further clarification would be welcome concerns the role of Claims Management Companies. It would be beneficial to see a clearer definition between bona fide debt management companies and these firms, especially as the OFT has confirmed in the guidance that some claims management practices don’t constitute a debt solution."

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