Currently the members of both associations represent 80%+ of the private sector debt managers in the UK.

The boards of DEMSA and DRF examine ways of working more closely is a post from: DEMSA - Debt Managers Standards Association

The Debt Managers Standards Association (DEMSA) has called on consumers to be more aware of their spending habits when shopping in the run up to Christmas, as a latest study by Moneysupermarket.com (1) reveals that 45% of UK adults are worried about how they will fund their traditional seasonal shopping.

According to the research by the comparison website, only 34 per cent of people will have saved enough money for presents by the time Santa starts his delivery mission – leaving 66 per cent having to resort to credit to fund purchases or without funds at all.

Last year, the average shopper spent ¬£320 on presents alone, according to figures by Asda (2), and that figure doesn’t look like reducing this year.

Add to this unemployment figures and the dire state of the job market, along with the immediate outlook for the economy, and the risk of developing potential debt problems increases – hence why DEMSA have called for shoppers to be extra careful when shopping this Christmas.

The beginning of the year is the busiest time for debt companies, as many people have one final blast on their available lines of credit before credit card bills and bank statements from Christmas arrive.

Michael Land, Chairman of DEMSA, said: “At Christmas time, many people’s finances are placed under intense strain as they have to find money for presents, food and travelling to see relatives which they would otherwise not have to.

“We all feel a duty to treat our friends and family over the festive period, along with getting in the spirit of things with celebrations, but we also have to be aware of the longer-term effects of maxing out credit cards and overdrafts.

“If this happens then finding expert impartial advice is essential. The DEMSA website www.demsa.co.uk lists all accredited companies so consumers can quickly find an honest and impartial company.”

The danger for consumers is that they may seek advice from debt management companies that have confusing or misleading terms and conditions, as Charles Wallace, head of codes, Office of Fair Trading, explains:

“Consumers are becoming increasingly savvy when it comes to controlling the amount they spend on credit. However people are still getting their fingers burnt when it comes to managing debts. This is why Office of Fair Trading has worked with DEMSA to safeguard consumers against ill-advised debt management solutions. When looking to choose a debt management plan, consumers can feel confident that they can rely on the advice of DEMSA members regarding the service being offered: wherever consumers see the OFT Approved Scheme logo, they can be confident about the advice and service they will receive.”

-Ends-

Notes to editor

1. Opinium Research carried out an online poll on behalf of moneysupermarket.com of 2008 British adults from 29th September and 2nd October 2009. Results have been weighted to nationally representative criteria.
2. Asda research, referenced at: http://your.asda.com/2009/9/22/christmas-shopping-well-underway-and-it-s-only-september
3. DEMSA has received accreditation by the Office of Fair Trading through its Consumer Codes Approval Scheme and are the only trade organisation within the industry to be sanctioned by them.
4. The OFT’s Consumer Codes Approval Scheme consists of two stages. During Stage One the code must meet the OFT’s published core criteria, which contain measures designed to remove or ease consumer concerns about undesirable trading practices. In Stage Two the code sponsor must prove that its code lives up to the promises made in Stage One by demonstrating that the code is being effectively implemented by its members and that consumer disputes are properly. See the Consumer Codes Approval Scheme section on the OFT website for further information and a list of approved trade bodies

DEMSA calls to prevent last blast of credit before Christmas is a post from: DEMSA - Debt Managers Standards Association

DEMSA is also pleased to announce that several debt management/IVA companies have applied to join, and are currently going through the various stages of audit and compliance.

DEMSA membership update is a post from: DEMSA - Debt Managers Standards Association

Once again our ongoing monitoring, including customer satisfaction surveys and mystery shopping, has shown a very low incidence of complaints from members’ clients

We are delighted to welcome Baines and Ernst as members of DEMSA and Nick Pearson of Baines and Ernst and Ivan Cooper of Chiltern to the board of directors.

We can also report that we have a considerable number of prospective members in the pipeline and Richard Wharton has been busy with compliance audit visits taking place over the year.

It is noticeable that in many cases applicants have to rethink their marketing approach to ensure that they are fully compliant with the DEMSA code, and we are pleased to say that in every case they readily agree to do so.  This ranges from minor to major alterations in their marketing and administrative approach to consumers.  This can only continue to raise standards in the debt management industry.

MICHAEL LAND

CHAIRMAN

2 October 2009

CHAIRMAN’S REPORT РANNUAL GENERAL MEETING is a post from: DEMSA - Debt Managers Standards Association

Moneysupermarket.com has decided from 1 October 2009 only to admit debt managers who are able to display the OFT Consumer Codes Approval Scheme (CCAS) logo. Since DEMSA is the only trade association that holds this accreditation, then they must, therefore, be members of DEMSA.

The object of the CCAS is to raise standards beyond those required by law and Moneysupermarket.com is to be applauded for its concern to ensure that the highest standards of consumer protection are available through their website.

Moneysupermarket.com policy decision is a post from: DEMSA - Debt Managers Standards Association

Welcome to our new website is a post from: DEMSA - Debt Managers Standards Association

The OFT only approves codes that have proved effective in safeguarding and promoting the interests of consumers beyond the basic requirements of the law.

DEMSA, through its members, aims to encourage the highest standards within the Debt Management Industry and to ensure clients are dealt with in a responsible, compassionate and transparent manner when finding an appropriate solution to their financial circumstances.

John Fingleton, OFT Chief Executive said, “DEMSA has undertaken a rigorous assessment to achieve OFT Code Approval, and I congratulate them on their work to improve standards for consumers using their services. Consumers can now be confident that where they see the OFT Approved Code logo they will be treated fairly, and that an effective redress scheme is available if this is not the case”.

DEMSA Gets OFT Code Approval is a post from: DEMSA - Debt Managers Standards Association