New Rules Introduced to Help Debtors

Tue, 07 Apr 2009

New rules have been announced today that will see consumers given a 30 day waiting period by debt collectors . The rules, agreed by the Credit Services Association (CSA) and the Government, come into effect today, and are designed to ensure people remain in control of their finances . The 30 day reprieve begins when a debt advisor contacts a collections agency, informing them that it is to draw up a timetable for the repayment of the debts . The scheme only includes non-charging organisations, such as the Consumer Credit Counselling Service or the National Debtline, and makes it compulsory for debt collectors to inform individuals of the support available to them from accredited debt advisors .

Another feature of the new rules is the provision of an alternative to bankruptcy for low income debtors. The announcement follows claims by the Citizens Advice bureau that the average borrowing who contact them owes nearly £17,000 through various forms of credit, such as credit cards and personal loans .

Consumer Minister, Gareth Thomas, said, ‘This new 30-day rule will give people a breathing space to help them take control of their finances as well as encourage them to seek help from debt advisors. I welcome the CSA's recognition that this is an important and sensible commitment to have made to borrowers.’
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