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02/06/2011

R3 comments on the OFT's credit practice proposals

R3’s comments on the OFT’s credit practice proposals  which were announced today.

“We welcome any measures that tackle the poor practice which persists in the unsecured credit market. It is essential that the most vulnerable consumers are protected. If a debtor is struggling we would advise them to seek professional financial advice rather than use third parties to access further credit.

“Our research indicates that there are nearly 1 million people who are struggling with debt who have not sought advice, and that over 2 million have taken out a payday loan in the past year. Those who seek financial advice should be put in the debt solution which best suits their needs, rather than being shoe-horned into the wrong procedure. We hope that the OFT’s new guidance will go some way to ensuring that debtors are given clear and impartial advice which makes them aware of all their options from the start.”

Julie Palmer, R3 Council Member

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.