Tuesday 7th of April 2009
Debtors are to be given more time to sort out their finances under new rules announced by the government.
A deal has been struck between ministers and debt collectors that will see those who seek IVA help and other forms of debt advice granted 30 days of ‘breathing space’.
The government reached the agreement with the Credit Service Association, which represents over 300 debt collecting agencies.
And it is expected to help people who are addressing debt management issues by allowing them a grace period during which the money cannot be pursued.
Last month, prime minister Gordon Brown announced a range of measures that will be introduced to help people with debt management, including a review of enforcement.
And consumer minister Gareth Thomas explained "This new 30-day rule will give people a breathing space to help them take control of their finances as well as encourage them to seek help from debt advisors."
