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NewsStricter rules on debt management promotions 'a good thing'
Stricter rules on debt management promotions 'a good thing'
The Consumer Credit Counselling Service (CCCS) has given its backing to advertising rules which will seek to prevent businesses from misleading the general public about debt management services.
Following the introduction of the Office of Fair Trading's Guidance for Debt Management Companies report, it could be said that citizens will be able to benefit from a more transparent relationship with their advisers.
The CCCS indicated that many people are unaware that genuinely free charitable services are available for dealing with money worries, whereas other offers - which ostensibly cost nothing - can eventually require the individual to fork out £5,000.
Malcolm Hurlston, chairman of the CCCS, said that consumers tend not to look extensively into their options when seeking advice for cash problems.
"Those marketing debt management plans have been clever at taking advantage of this and enticing customers in with the offer of a free service," he said.
Recently, David Rodger, managing director of national charity the Debt Advice Foundation, said individuals should keep on top of their finances by regularly checking their bank statement.
Posted by Emily Jones
01/09/2010 16:17
News category: Consumer