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New report on fee charging debt management underlines the need for an industry protocol for debt management plans

Posted on November 8, 2012

DEMSA, the principal trade body in the professional debt management sector, today responded to a report on debt management, commissioned by Lloyds Banking Group and the Money Advice Trust. The report states that there are serious concerns over the practices of some fee charging debt management companies.

Commenting on the report, Michael Land, Chairman of DEMSA, said:

“As an organisation that has long worked to improve standards in the sector DEMSA is naturally concerned by the conclusions of this report. It is our firm belief that customers should receive a consistently high level of service in the quality of advice they receive, regardless of who provides this.

“The concerns which this report points to are the precise reasons why we need to implement an industry wide Debt Management Plan Protocol, as demanded by the Government. The Department of Business wishes to have agreed a common standard of best practice across the debt advice landscape by the end of November 2012. This would undoubtedly tackle many of the problems this report focuses on and give consumers the confidence they deserve.

“DEMSA has been working closely with the Government and other stakeholders for some time to develop a Protocol to ensure strong consumer safeguards across the debt management sector.”

Michael Land continued:

“Customers have long been accustomed to having an open choice of providers in the services they receive, what is important is that there is a robust framework in place to ensure common standards across all providers.”

DEMSA has been committed to high and rising standards since its inception in 2000, and its members operate under an OFT – approved Code of Conduct.

For further queries please contact:

Melanie Taylor, Director of External Relations at the Debt Managers Standards Association – 0113 277 7610
Chris Bose, Lansons Communications – 020 7294 3619