A statement released by the Debt Managers Standards Association (DEMSA) has addressed recent fears expressed in a report over fee charging debt management companies.
DEMSA is an organisation that works to improve standards in the debt management sector, by ensuring the interests of the public are protected as well as the lenders.
The report commissioned by Lloyds Banking Group and the Money Advice Trust criticized the practices of certain fee charging debt management companies. DEMSA has responded by reassuring the public that a protocol will be put in place.
Michael Land, Chairman of DEMSA, said: “DEMSA has been working closely with the Government and other stakeholders for some time to develop a Protocol to ensure strong consumer safeguards across the debt management sector.”
“Customers have long been accustomed to having an open choice of providers in the services they receive, what is important is that there is a robust framework in place to ensure common standards across all providers.”