Credit industry given debt collection advice

Thursday, February 25th 2010

Debt collection advice has been issued to the credit industry, which aims to help people overcome their debts.

Advice UK, Citizens Advice, the Institute of Money Advisers and the Money Advice Trust compiled a list of five steps to be taken for best practice.

Such moves would not only benefit consumers, but could also prove advantageous to agencies.

The steps include developing communications, offering support and maintaining best practice.

Consumer affairs minister Kevin Brennan noted that this is vital for people in debt.

Alex MacDermott, creditor liaison policy officer at Citizens Advice and author of the report, said: "Bad debt collection practices can have dire consequences and often make things worse by pressurising the person in debt to pay more than they can afford."

The Citizens Advice Bureau warns people struggling with debt to get help and contact the creditors because the problem will not go away otherwise.

It also offers a fact sheet with steps to follow whilst doing this.