OFT to review debt management practices

04/11/2009

The Office of Fair Trading has launched a review of compliance levels across the debt management industry to ensure consumers are being treated fairly across the board.

Since the last review in 2003, the debt management industry has changed significantly and the OFT says a new review is required to see if its debt management guidance needs to be updated.

Online debt management advertising is one area which the OFT is keen to look at, while it also plans to introduce an online form for consumers wishing to complain about a licensee.

The OFT claims that more and more people are seeking help with personal debt situation? Take our Debt Calculator test today!'>personal debt problems, which has led to an influx of new companies into the sector.

While many are reputable companies, the OFT believes it is necessary to check that all those in the industry abide by the rules.

Debt solutions firm EuroDebt believes that since the last review in 2003 the Debt Management sector and the economy have changed dramatically.

There has been a major influx of new players in the last few years. Many of these are current or former secure loan brokers, networks and packagers and track records vary from one provider to another.

We, therefore, certainly believe there needs to be better clarification and supervision of the sector as a whole with meaningful statistics on the performance of DMPs.

We look forward to actively working with the OFT in its consultation and look forward to the outcome in early 2010.

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