Clause 5 - The new Regulators

Part of Financial Services Bill – in a Public Bill Committee at 3:45 pm on 1 March 2012.

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Photo of Yvonne Fovargue Yvonne Fovargue Opposition Whip (Commons) 3:45, 1 March 2012

Actually, I feel that withdrawing the debt management companies will help those who provide free services. The debt management companies deal with people who can afford to pay; they do not deal with people who have no income and go for write-offs, and that type of thing. Such debt management companies take clients from those, such as the Consumer Credit Counselling Service and Payplan, that use fair shares. And the more they take money from their clients and leave fair shares agencies with people who cannot afford to pay, the more those agencies struggle, because they cannot get their money from fair shares. We should look at the business models of CCCS and Payplan, both of which use the fair shares model, because the more the fee-charging debt management companies go in and charge clients, the more they are taking the customers who could use the fair shares model, and it tilts their business model, too.