Teresa Pearce – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Teresa Pearce on 2016-01-13.

To ask Mr Chancellor of the Exchequer, what his policy is on the commercial provision of consumer debt advice services.

Harriett Baldwin

The Government is very concerned about evidence of consumer detriment in the debt management market. That is why we have given the Financial Conduct Authority (FCA) robust powers to protect borrowers using debt management firms.

For profit debt management plan providers, operating with consumers’ interest at heart and in full compliance with regulatory requirements, can help provide a wider supply of solutions and products for consumers, and help them get in control of problem debts. The Government’s focus has therefore been on comprehensively reforming regulation of this sector, and ensuring firms act in customers’ best interests.

The FCA is currently scrutinising debt management firms as part of its authorisation process. Firms which do not meet the required standards will not be able to continue to provide debt management services.