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:

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- 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.

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Debt Help Services 

If you have racked up a lot of bills and you wish to get your finances back in order, then you may either go for free debt help or take professional guidance in paying off your bills. A counseling session with a debt help online company will enable you to find the best way to repay your dues and restore your finances once again. After this you will definitely like to know about debt help as what are the tips and strategies to get rid of debt. Lakhs of people across the globe get indulge into the net of debt and wish to restore their finances, and they struggled for reliable sources for availing debt help. For such people here we have discussed five tips and strategies and hope it will make some difference in their debt restoration. 

Debt Help Advice

We are discussing all the these tips to provide you much needed debt help as a result making your life more smoother. Firstly compare and choose the best solution: under this we will provide you 6 solutions that may help you to get rid of debt. You need to compare all the provided solutions that may become beneficial in repaying your debt bills. 

Second tip of debt help is to use the 4 keys to get rid of debt:

if you're confused about how to come out of this debt then can go through our 4 keys as these four keys comprise of tips on simple budgeting and frugal living that can help you get rid of debt troubles and restore your finances. Budgeting tip is the most essential aspect of debt help as it enables you to do well-planned budget if in case you're not able to manage your bills efficiently. 

Tips to reduce your dues : 

Here tips and strategies are given that will help you in managing your payments more better than previous way. And last but not the least tip that follows debt help is to Avoid mistakes while you make payments :

it will enable you to avoid making debt elimination mistakes like canceling unpaid credit/store cards, not preparing a budget and making only the minimum payment are some of them.

Company Debt Help

When it comes to debt help then certain myths and truths wide spread in the market that you will come across to face. One such myth about debt help is that can get quick debt help over the phone or internet but the following Truth is that True debt help is not quick or easy. It starts in the mirror with you.