DRF have welcomed the new guidance by OFT which formalises current good practice and provides clearer and more specific guidance for debt management companies.
Debt Resolution Forum, the training, monitoring and representational body for fee-charging debt resolution companies today welcomed the OFT’s publication of its revised Debt Management Guidance.
Commenting David Mond, DRF chairman and CEO of debt solutions company, ClearDebt said:
“We welcome this new guidance, which formalises current good practice and provides clearer and more specific guidance for debt management companies. This guidance is automatically part of DRFs own mandatory members’ code of standards – which exceeds that required by OFT.
“We believe that reputable debt resolution companies already meet and exceed these standards and DRF has robust annual inspection by the independent Insolvency Practitioners Association, in place to ensure consumers and creditors can have confidence in our members.
“DRF also applauds the recent change in OFT’s procedures for examining new applications and renewals of Consumer Credit Licences. This is no longer a rubber-stamping exercise, but means that those individuals and companies that succeed in obtaining or keeping a licence will have jumped through many more hoops than before, including a much more rigorous examination of their business model, sources of leads and processes, as well as ensuring the people in the business have the right experience, skills and training. DRF has made a huge contribution to the latter, with the introduction of the 210 hour study Certificate in Debt resolution, now awarded to, or being studied for, by over 600 individuals.
“DRF welcomes OFT’s emphasis on dealing appropriately with vulnerable people and has already piloted course in conjunction with mental health charity, MIND, to ensure DRF members’ staff can identify vulnerabilities and advise appropriately.
“DRF believes that a mixed economy for debt advice is essential in the UK, where charitable debt advisors are being required to concentrate on the most vulnerable individuals and to advise around 50% more cases in 2012-13 with the same funding as last year.
“There are hundreds of thousands of people who need debt advice and can afford the fees our members charge – the cost of financial failure need not fall on the public purse. The OFT’s guidance, and the work of trade associations like DRF will ensure consumers can go to a fee-charging debt resolution company in confidence that they will not be misled or their money mishandled”.
Please contact DRF spokesperson, Andrew Smith:
Tel: 0161 968 6825
Mobile: 0791 240 7532
Tel: 0161 969 2023