Debt customers 'must be treated fairly and sympathetically'

Monday, May 17th 2010

Better protection is needed for those in debt and this should be provided by the government, according to Citizens Advice debt policy officer, Peter Tutton.

"It remains vital that lenders treat people in debt fairly and sympathetically and help them come to a workable solution over repayment arrangements," he stated.

His comments follow a decision by the Competition Commission (CC) on Friday (May 14th), which confirmed there was a case to prevent payment protection insurance (PPI) being offered at the point of sale.

This means PPI could not be sold at the same time as a personal loan or other associated credit product, the CC noted.

While Mr Tutton welcomed this move, he said more needs to be done about this issue, as those in debt find it difficult to make the right selections to suit them.

Simpler products should be created, allowing customers to purchase more effective options that are priced fairly, he added.