- Friday, 7 August 2009Citizens Advice has welcomed the Office of Fair Trading's new guidelines on irresponsible lending.
Allowing consumers to borrow far beyond their means has been widely cited as a leading factor behind the current debt problems being faced by millions of Britons, with many so far in the red that they are likely to be seeking out
individual voluntary agreements (IVAs).
As such, the charity has expressed its delight that steps are finally being taken to prevent banks and other financial institutions to lend irresponsibly, though demand for
IVA advice is likely to remain high for some time yet.
"Despite the credit crunch we are still seeing cases where people have been given credit that they cannot afford that has caused or contributed to severe debt problems," Peter Tutton, debt policy officer at Citizens Advice said.
"The recovery needs to be based on a new foundation of fairness and responsible lending if we are not to see a repeat of the current crisis a few years down the line."
According to figures recently cited by the Times, lending to UK consumers could cost the financial services sector around £100 billion in bad debts before the economic downturn comes to an end.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
| |
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960