An “industry code of practice” would help those in debt

People in serious debt would benefit substantially from the implementation of a government-backed code of practice for those offering debt advice, it has been suggested.

According to Jessica Brown of talkaboutdebt.co.uk, people suffering from severe debt problems are increasingly at risk of paying more for financial counsel, with 48 per cent of those taking part in a consumer research study having spent too much on their debt solutions.

“People in serious debt are a vulnerable group and it is vital they get the right advice when they need it,” she said, adding that the government’s decision to look into debt management firms was a positive step but that “an industry code of practice” should be implemented.

Ms Brown’s comments come in response to the government’s consultation paper, Debt Management Schemes, which intends to provide effective solutions for both debtors and creditors through introducing repayment deals that are agreed to by all parties.

By Sarah Adie