Regulators must do more to offer debt help to the population throughout the recession in order to prevent poverty from growing, it has been argued.
Citizens Advice has warned that it has seen “sharp increases” in the level of requests for aid with job losses, mortgage arrears and fuel costs, with in excess of 90,000 enquiries being received in 2008.
It called upon the government and businesses to do more to support consumers through the difficult times and work to boost the nation’s confidence.
People’s fears are growing that creditors will suddenly restrict their access to lending and overdrafts, or that they may lose their jobs, the charity noted.
Director of public policy for the body Teresa Perchard said that a clampdown on “bully boy debt collection tactics or fake employment and training opportunities” must be introduced.
In related news, a Nationwide poll has discovered that 61 per cent of homeowners could not meet debt repayments and bills if they were unable to work.
By Jamie Price