Consumer group backs debt management review

Consumer group Which? has backed the Office of Fair Trading's OFT decision to launch a review of UK debt management practices.

The review – the OFT's first into the industry since 2003 - will look at advertising and communications between service providers and their customers.

Just last year, Which? conducted its own investigation into the sector, finding that a number of firms failed to provide the unbiased advice they had advertised to those seeking help with debt.

Now, as free debt advice groups struggle to cope with demand, the organisation claims protection is needed for consumers facing difficulties.

Vera Cottrell, personal finance campaigner at Which?, said that the industry had previously been found to exhibit some "shocking practices", and with the recent introduction of debt relief orders, a review is needed.

She added: "We have no idea how debt management companies have taken to them and whether they are giving consumers the adequate and accurate advice they should be getting, so we think the review is definitely necessary."

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2009-11-05 12:19:51 © Moneyextra.com