Debt Advice & Consolidation - The Importance of Regulation in the Industry

The way in which personal debt is escalating in the UK is a cause for concern. In 2006 the Citizens Advice Bureau reported that the average total household debt was £13,153, an increase of as much as 30% in the last three years*, and early figures for 2007 show no sign of a slow down.
Worrying too is the lack of regulation in the debt counseling industry, particularly at a time when so many are affected and looking for debt help.
This lack of regulation has led to an upsurge in debt advice services pushing solutions which make them the most money, even if they are not in the best interests of the debtor. Of course this also has a knock on effect for the creditors, who increasingly find they accept a debt solution proposal only to see it fail after a short time.
Some debt solutions, such as individual voluntary arrangements (IVA) are tightly governed, however this is not the case for all of the different options available. In particular, companies offering debt management and consolidation services are notoriously under regulated.
Clear Start is a national organization that offers free and impartial support and advice to people in serious debt. It is licensed and regulated by a number of different bodies which has helped to earn it the reputation of being trustworthy and reliable.
Clear Start knows that regaining control of their financial situation is a matter that most people take very seriously. Being licensed and regulated is an important consideration for customers seeking debt advice and Clear Start places a big emphasis on this.
It is also why Clear Start works with a number of public and private sector organizations to improve the legislation and best practice in the debt solutions sector.