This site uses cookies; by continuing to use our site you agree to our use of cookies. More details in our privacy policy. Close



Some debtors are more equal than others 22 November 2013

Despite an industry-wide focus on fair customer treatment, new figures from the Debt Resolution Forum (DRF), a specialised body for debt advisors, suggest some concerning discrepancies.

On behalf of the DRF, a report from research co-operative Zero-credit that surveyed 600 debtors across age, gender and ethnicity groups, shows that women, ethnic minorities and those with long-term illness fare comparatively poorly with creditors.

According to the report, women are more likely than men to face increased charges (64%) and receive calls or visits from creditors at unreasonable times (60.7%).

It also shows that debtors belonging to ethnic minorities are twice as likely as white UK debtors to face legal action, even after entering a debt-solution scheme.

The report highlighted in particular differences in treatment based on debtor age, with people in the 18-24 age bracket ranked highest on levels of increased interest, penalties and charges.

While the numbers dropped for all age groups after entering a debt-solution scheme, the youngest age group experienced the smallest decrease to 50% while the other groups dropped to an average of 13.5%.

The rate of calls or visits from creditors at unreasonable times followed suit, as those aged 18-24 remained at 83.3% even after entering a solution, while the remaining age groups experienced an average 73.9% decrease between them.

This pattern carried over to the level of notices of legal action.

The 40-59 group ranked highest in number of notices of legal action prior to entering a solution with 57.1%, followed by 18-24 and 25-39 with 50% each, trailed by the 60-and-overs with 44.8%.

While the other age groups reported drops after entering a solution, 25-39 (17.4%), 40-59 (17.8%), and over 60 (11.5%), the youngest age group experienced a rise to 66.7%.

Nevertheless, the research demonstrated high levels of satisfaction with the paid-for debt advice sector.

With the belief that debt advisors “had my best interest at heart,” the majority of responders scored their debt advisors nine out of ten.

Some 80% claimed to have improved management of their money after signing up to a debt solution.



blog comments powered by Disqus