More regulation of Debt Management companies rejected
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Creditors Want Stricter Controls
Recently creditors have been lobbying for stricter controls over debt management companies that arrange IVAs, arguing that regulation of the debt management industry would protect the public from misleading and bad advice.
R3, the Association of Business Recovery Professionals has also called for more regulation of debt management companies to address this issue.
Read below what the BBC is reporting and then let us know if you agree with the Trade and Industry minister Jim Fitzpatrick.
The BBC reports: "The government has rejected calls for more regulation of firms that market individual voluntary arrangements, known as IVAs, to people with debts." They when on, "Department of Trade and Industry minister Jim Fitzpatrick has said banks should lend money more carefully."
Speaking to the Financial Times, Mr Fitzpatrick said: "If we've got a rise in indebtedness, if we've got a rise in people having difficulty in servicing that debt, then maybe the banks are lending too much money or maybe they're not being as careful as they used to be in scrutinising the applications."
He added "If they'd not lent it in the first place then they wouldn't be in the difficulty of trying to recover it."