Tim Wheeldon is joint managing director of Fluent Money
As many consumers continue to navigate through times of economic uncertainty and financial insecurity, it is more important than ever that they can trust that the advice they receive is impartial and accurate. The news that the Debt Management industry will soon face increased regulation is therefore encouraging.
The increased regulation will mean that when a customer approaches a Debt Management company, before a Debt Management Plan (DMP) is offered, a lending solution must be sought.
Of course, for some customers a DMP is exactly what they need to help them to sort out their finances. Debt management companies provide a valuable service for those who are truly struggling, but an inappropriate DMP can do considerable harm to a consumer’s credit rating.
For a large number of DM companies this will make very little difference – many already operate ethically and do right by their customers. However, as well as these good guys, the industry also contains a number of ‘cowboys’. It is great news that this regulation will help to root them out and this is without a doubt a good thing for consumers.