Abacus Daily Debt News

Debtors should be “more engaged, demanding and discerning”

Debtors and those considering entering into debt have been advised by the financial regulatory body that they could benefit from being more involved in the lending process.

Dan Waters, director of retail policy and conduct risk with the Financial Services Authority (FSA), remarked that the organisation’s discussion paper, released in 2008, outlined how consumer responsibility was considered in terms of policy-making.

He stated that the FSA intends to move forward in its financial capability agenda as a result of the publication but noted that the industry and the public will both benefit from consumers becoming "more engaged, demanding and discerning" in relation to issues in the sector.

Earlier this month, a consultation document aimed at finding the best ways to help those with debt problems was issued by the Ministry of Justice. Both creditors and debtors may be benefited through the new government proposals, which include the implementation of more consistent charges.

By Sarah Adie