Sheffield South East MP, Clive Betts, is supporting a cross-party campaign calling for fee-charging debt management companies to face greater regulation after it was revealed that many are flouting rules meant to protect consumers.
The campaign for better regulation – led by the All-Party Parliamentary Group on Debt and Personal Finance of which Clive Betts is a member – wants to stop consumers getting a bad deal from the private companies who charge those in debt to negotiate with and/or set-up payment plans with creditors.
Clive Betts is backing the cross-party call for more effective regulation, including:
* an immediate ban on cold calling;
* an immediate ban on the charging of upfront fees for debt management;
* effective auditing of for-profit debt management companies.
Clive Betts said: “I’m calling on the Government to take urgent steps to introduce more effective regulation of the companies who make money out of people in debt. All too often these companies are not debt management companies but debt exploitation companies.
Of course, not all fee charging companies break the rules’ but the whole sector needs reform so that consumers know that they can trust those companies offering to help them with their debt.
If anybody is worried about their debt they should seek free advice from their local Citizens Advice Bureau. I know from my constituents that the Citizens Advice Bureau’s free debt management help can really change people’s lives: so if you need help, visit the CAB.”Other news from Sheffield Labour