Policy
2 July, 2009
Government to pilot new self-help debt advice toolkit
Proposals contained in new Consumer White Paper published today
The government is to pilot a new self-help debt advice toolkit to support clients who want to negotiate repayment proposals with their creditors themselves.
The plans are part of a new consumer White Paper, 'A Better Deal for Consumers - Delivering Real Help Now and Change for the Future', launched by Consumer Minister Kevin Brennan today. The White Paper sets out action to promote responsible borrowing and lending and provides a longer term framework to enhance and enforce consumer rights.
The new self-help toolkit, that is being developed by the Monday Advice Trust with partners and in conjunction with creditors, will be available in the Autumn, and will be designed to offer creditors reassurance that the client's financial statement has been through an approved debt advice process delivered by nominated advice agencies.
In addition, other measures in the White Paper include -
- a new Debtor's Guide from the Insolvency Service to help people in debt take control of their finances;
- appointment of a new Consumer Advocate responsible for co-ordinating work to educate consumers; and
- breathing space relief for consumers with arrears on their utility bills and other unsecured debts.
NB - the breathing space for consumers across unsecured debt has been in place since March 2009 and ensures that major banks and credit card companies together with energy and water supplies will offer clients a 30 day grave period during which debts are not pursued so long as the client approaches them through a Not for Profit adviser.
The White Paper A Better Deal for Consumers – Delivering Real Help Now and Change for the Future is available here.
