Thursday 18th of June 2009
Borrowers have been advised to contact lenders if they are struggling, in order to avoid having to deal with debt collectors.
The Daily Record noted that such agencies have been causing distress for consumers through the ways in which they are attempting to recover the debt.
However, a spokesman for the Credit Services Association said techniques such as "engaging with a debtor and building a relationship with that debtor to ensure a satisfactory outcome" are increasingly being used.
Borrowers were urged to contact the creditor first in order to avoid this being necessary and a debt management plan is one solution that could be agreed.
Such arrangements allow debtors to repay at an affordable rate and could be needed by an increasing number of consumers following findings by Moneyfacts.co.uk.
The price comparison site revealed that credit card interest rates have increased by nearly two percentage points over the last two years, despite base rate reductions.
