There’s been a buzz lately about the news that the government is set to begin regulating debt management companies operating nationally. Is this good or bad news for consumers and the debt solutions industry?
With the establishment’s seemingly increasing interest in extending its control over a variety of industries and sectors, many people may have been scratching their heads over why this sort of company has been overlooked whilst the financial downturn rages.
Positive responses to the move to regulate debt management companies are loud and clear from those who have been scammed by less than stellar firms in the past as well as those concerned over the potential for further damage to households that are already experiencing turmoil.
But that leaves plenty of people to throw some weight around in the opposing camp.
Not everyone is happy about the decision, and as you might’ve guessed, there are more than a few debt management companies who themselves disagree with the necessity and even with the wisdom of regulation.
Standardised requirements, supervision, and accountability to a government office, the naysayers note, may quickly lead to a necessary increase in fees passed on to clients, who are mostly low on cash to spare in the first place. And though there are certainly some companies that take advantage of debtors in need, the majority of firms are after earnestly helping their clients while making an earnest living themselves; tight regulation may sink small or individual firms and send the message that such companies should be treated with cold suspicion.
Whether you’ve worked with a debt management company in the past or not, you’re likely to have a view on the government’s plans for regulation. Or is it interference?
Tell us your thoughts.