Debt Management Regulation - Gemstone Debt Management

Companies in the United Kingdom who offer help with debt problems must hold a Consumer Credit Licence, which is issued by the Office of Fair Trading (OFT). This includes firms who offer debt management plans, or Individual Voluntary Arrangements, or who negotiate with creditors on behalf of borrowers. If the OFT finds that a firm has acted improperly, its enforcement powers can include removal of the Licence.The OFT first issued guidance to the debt management industry in December 2001 and updated this guidance in September 2008. The OFT guidance places obligations on firms such as:

Debt Management 

- Treating customers fairly 

- Being transparent about fees and charges 

- Fully and fairly investigating customer complaints and offering appropriate redress where due 

- Compliance with the Data Protection Act in the handling of personal data 

- Not engaging in high pressure selling 

- Giving equal prominence in advertising to both the advantages and disadvantages of a debt management option

In September 2010, the OFT carried out a compliance review of the debt management industry and found several issues of concern in many companies who help customers to manage debt repayments. Identified problems included:

- Lack of competence among staff 

- Misleading advertising, especially regarding transparency in disclosing the fees due 

- Lack of awareness of the Financial Ombudsman Service complaints procedure

Largely based on the findings of the compliance review, the OFT updated its guidance in March 2012. The revised guidance explicitly stated that certain practices were unfair, such as:

Gemstone Debt Management

- Sending unsolicited text messages or emails 

- Remuneration structures that may give inappropriate financial incentives to sales staff 

- Using misleading trading names, such as ones that incorrectly suggested the company was a charity or government helpline

The OFT is particularly concerned about standards in this industry as many customers seeking help with debt relief may be classed as 'vulnerable' customers as a result of the fact they are experiencing financial hardship.

As a result of the 2010 review, 129 companies who offered help with debt payments were instructed to take immediate action to improve their practices, or risk losing their Licences. This led to 87 companies exiting the debt management market, either voluntarily or forced out by the OFT.

Debt Management Regulation tips

Debt Management Regulation companies who are members of the Debt Managers Standards Association (DEMSA) must also comply with that body's Code of Conduct. This Code places additional requirements on member firms concerning areas such as staff training and advertising. DEMSA can also investigate customer complaints and carry out its own disciplinary investigations, with its range of sanctions extending to expulsion of a member firm from DEMSA.

Debt Management Guide | Debt Loan Management | Debt Management Wiki | Debt Management USA | Gemstone Debt Management | Debt Management Company's.

Debt issues can be very dangerous for an individual or even a company and there is definitely a great need of managing debts as soon as it is possible. The good news is that there are trained professionals who can help through the management system of debts thus offering plans which have the potential of helping you deal with and clear the debts that you could be having.

Debt Management Guide

Debts can be as a result of overdrafts, loans and even credit limits which are overstretched. In the case where the monthly expenditure exceeds the monthly income, it can also result into debts and people in such situations will need professional advice if at all they are to manage dealing with the financial issues that they are facing. Using credit cards is another aspect that can lead to debts especially when the individuals use the cards to clear other pending debts or pay for items. The fact is that different situations can lead to debts and without proper management, they can ruin you.

Debt Loan Management

There is therefore a great need for all people to know just how to manage their debts. With proper debt management and a plan that is well laid out by the professionals, you will have the financial serenity that you have been longing for. One of the benefits that come with the management plans is that you will manage to work with a onetime payment every month thus keeping creditors controlled. The debt management experts will also help in reducing the interest charges that could have accumulated as well as the penalties thus giving you the chance to clear debts at very affordable rates.

Debt Management plans

The debt management professionals will take care of all the telephone calls and letters from your creditors, solicitors and collection agencies so you can rest easy. They also will come in handy in ensuring that you avoid bailiffs and court actions that could otherwise leave you penniless. They will always find a debt management plan that will help you in dealing with the current debts that you have without putting you into a situation whereby you are tempted to incur other debts.

Financial management is one of the best ways of keeping debts at bay. Most people however still find themselves in debts but with proper debt management, you will easily get over the debts and manage to live a life that is free from any kind of debts.