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HC 1649, Fourteenth Report of Session 2010-12 - Report, Together with Formal Minutes, Oral and Written Evidence
- House of Commons - Business, Innovation and Skills Committee
- TSO (The Stationery Office)
'Debt Management (HC 1649)' highlights four main areas of concern relating to debt management: regulation of consumer debt, payday loans, debt management companies and the Money Advice Service.
The Financial Services Bill failed to clarify the way in which the consumer credit market is to be regulated. The report makes a number of recommendations for future Government action:
reforms for higher licensing fees to be charged for higher-risk credit businesses;
for a fast track procedure be put in place to suspend credit licenses; and
for the new regulator be given the power to ban harmful products.
The Committee also recommend that the payday loan industry must adhere to the highest standards, either through the codes of practice that are currently being developed or by the new regulator.
Regulations need to be introduced to ensure that debt management companies publish the cost of their debt advice and their outcomes, if an agreement cannot be reached during discussions with the industry. Effective auditing of debt management companies' client accounts also needs to be established.
The Money Advice Service needs to provide details of its business plan in response to the legal aid budget being cut by 75%. The Service is due to be up and running by April yet its relationship with highly respected brands such as Citizens Advice, remains unclear.
|Format||Paperback||Published||07 Mar 2012|
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