You are here: Home - Credit Cards & Loans - News -

Government consults on giving debtors ‘breathing space’

0
Written by:
24/10/2017
People with debt problems could be given a six-week breathing space under amendments to the Financial Guidance and Claims Bill.

The Treasury said the treatment of those in debt would be the subject of a consultation, to become law by 2019. It suggested that those affected by debt may be exempt from further interest and charges for a period of time, allowing them to seek advice.

The amendment has come after rebels in the House of Lords threatened to vote down the bill.

The rebels were led by Baroness Ros Altmann, former pensions minister. She said yesterday that the Lords were proposing three major amendments, including a ban on pensions cold calling, and mandatory guidance before transferring out of a pension, plus this special ‘duty of care’ clause for vulnerable customers who need help with their financial affairs.

The Department for Work and Pensions has agreed to a cold-calling ban in principle, but no date has been set for implementation. Altmann said on her blog yesterday: “Having announced it wants to ban pensions cold-calling and introduce breathing space for people with unmanageable debts to help reschedule their payments, it is hard to understand why Ministers are refusing to agree to introduce the necessary legislation in the Bill now going through Parliament. Yet there is widespread support for this ban, across all political parties, consumers groups and providers.”

Jane Goodland, Old Mutual Wealth responsible business director, said: “Whilst breathing space for those struggling with problem debt is welcome, we cannot avoid tackling the fundamental issue of a massive gap in UK financial capability.

“The new ‘breathing space’ scheme  is yet another example of symptomatic treatment of consumer financial problems. In recent years we have seen numerous interventions designed to tackle the consequences of financial difficulty, from the FCA stepping-in to cap payday lending costs to a ban on pension cold-calling.

“These measures are admirable and will help protect vulnerable consumers. Nonetheless, they are a sticking-plaster to the symptoms of a lack of knowledge and capability when it comes to managing our financial lives.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Moneyfacts says first-time buyers hit hardest by rate rises

The recent upturn in mortgage rates is hitting first-time buyers hardest, according to research from Moneyfacts.

Close