Northern Rock have set out in detail their new interest-charging policies for their three unsecured loan product types which will affect any new proposals received moving forward. These changes have been welcomed by The Debt Resolution Forum as a positive approach to working with people who are trying to repay their debts.
The Debt Resolution Forum (DRF), trade body for fee-charging debt solution companies, has welcomed the announcement from Northern Rock that, from September 1, they agree to freeze all interest on debts owed by customers entering Debt Management Plans in order to help repay their debt.
DRF Chairman and CEO of ClearDebt, David Mond, confirmed his delight that Northern Rock have decided to take this very positive approach to people trying to repay their debts to them. He comments:
“DRF strongly welcomes Northern Rock’s decision: Interest which is added to these kinds of debts often makes it very difficult for struggling debtors to repay what they owe. This is a breakthrough and, whilst many creditors do freeze interest and charges, we hope many other creditors will follow Northern Rock’s example by formalising this.”
Northern Rock announced positive changes to their policies regarding acceptance of IVAs earlier in the year, after dialogue with DRF.