The review of Debt Management Guidance by the Office of Fair Trading is intended to review the suitability of CCLs of 129 fee-charGing firms.
The Debt Resolution Forum (DRF) welcomes the Office of Fair Trading’s review of debt management firms and the OFT’s intention to review the suitability for a consumer credit licence of 129 fee-charging debt management providers.
Commenting, DRF chairman, David Mond, said:
“We have been working with DRF’s members since the Spring to ensure that they are compliant with the OFT’s Debt Management Guidance and are confident that most of our members have already addressed the issues identified by the OFT and are now fully compliant.”
Through the independent regulator, the Insolvency Practitioners’ Association, we have made arrangements to provide the independent audit required by the OFT.
“The OFT report is a welcome wake-up call for the industry and we hope it will encourage many of Britain’s hundreds of debt management companies to take standards and regulation seriously and to join DRF.“
DRF has already put in place an independent complaints procedure for consumers, chaired by the money avice coordinator of Advice UK and has designed and implemented an Advanced BTEC in Debt Resolution for members staff. Both these initiatives have been welcomed by the OFT”.
“An annual monitoring and accreditation programme has also been put in place – provided independently by the IPA – and the DRF is confident that it is well on the way to providing a quality mark consumers can trust – this is vital because the charitable sector has already said it is unlikely to be able to fulfill the UK’s need for debt advice and current constraints on spending are likely to mean that those that can pay for debt help, should pay”.