General debate relating to debt advice and debt management services

6 December 2011

Summary

Citizens Advice warmly welcomes this debate on debt advice and debt management services.

This briefing covers:

the importance of access to free and independent debt advice;
problems with current debt remedies;
the need for effective consumer credit regulation, especially for financially vulnerable consumers; and
the need for implementation of the statutory debt management plan scheme.

Key points

Access to free and independent debt and money advice services is vital for those in financial difficulty. These services need to be funded in a sustainable way and they should meet the needs of all consumers, including the most vulnerable.
People in financial difficulties need better options to deal with their debts so they are not drawn into using poor quality debt management firms or taken on high cost credit as a coping strategy.
The consumer credit regulator needs stronger powers and more resources to both prevent consumer detriment and act more quickly and decisively to deal with problems when they appear.
Implementation of Part Five of the 2007 Tribunals, Courts and Enforcement Act is long overdue and when implemented, could provide credible solutions to many of the multiple debt problems seen by Citizens Advice Bureaux.