*Members of DEMSA – the Debt Managers’ Standards Association – held a summit yesterday to discuss the Department of Business Innovation and Skills’ recent debt management report.
The meeting brought together DEMSA’s entire membership to discuss how the sector can best address the recommendations of the committee in a way which is both effective for consumers and sustainable for firms.
Following discussions, DEMSA members agreed to launch a third party and independent impact assessment to consider the feasibility of implementing each of the committee’s recommendations.
The BIS committee report suggested a number of improvements to the sector including; greater transparency over the cost and outcomes of debt advice, the phasing out of up front fees and effective auditing and protection for client accounts.
Michael Land, chairman of DEMSA, said the association’s members have agreed that the sector must come together and positively respond to the concerns made by the committee.
He added: “Commercial debt management has a valuable role to play in helping consumers regain control of their finances – a point recognised by government and consumers alike.
“To ensure that consumers can have confidence in the sector, it is vital that we look at how the sector can improve in a way which delivers a fair outcome for consumers and a sustainable commercial environment for firms.
“I hope that this rigorous study will allow the sector to contribute to the government’s response to the BIS committee with a clear and informed view on the implementation of the recommendations.”