In a move that has been welcomed by the industry, the FSA initiative should ensure that consumers end up with better information and care to help keep them out of debt.
“Anything that makes things clearer for the customer and builds up the relationship between provider and customer can only be a good thing,” said Michelle Slade, MoneyFacts spokeswoman.
She added that rising bad debt had made banks increase their interest rates or find other ways to recoup losses at the expense of customers.
Payments association Apacs also welcomed the news, but urged consumers who were unhappy with current providers to shop around for deals.
Debt management advice is already available for those uncertain whether they are getting the best deal from their bank and what to do about it.