Curbing free credit culture is crucial to repairing personal debt despair
London 20th January 2010, Vincent Bond and Co, the UK based financial and debt solutions specialists, welcome proposals by the government, insolvency officials and credit card industries to help consumers regain control in the fight to battle personal debt levels.
Following the governments recent consultation on consumer credit, regulation likely to be approved to reduce the UKs personal debt deficit of £230 billion*, includes; abolishing store cards being issued by financially unqualified staff, banning unsolicited credit limit increases for already debt laden consumers, tightening of financial advice including simpler information for customers and the provision of full training for staff processing store card offers.
Insolvency experts have warned that without the sanction of streamlined practices to curb the UKs spend now and pay later culture, vulnerable consumers will still be enticed by headline rates and discounts, compounding debt levels, leading to higher rates of personal insolvency.
Steve Rees, Managing Director, Vincent Bond commented:
In recent months consumer credit problems have become more apparent, due to potentially the worst economic crisis the UK has faced since the 1930s Great Depression. In the last 10-20 years many consumers have become embroiled in the easy free to gain credit system the UK has employed. Consequently, when the recession hit, these people were unable to keep afloat financially and service their debts, resulting in increased levels of personal insolvency.
We welcome moves by the government and credit card industries to tighten lending practices including the area of store card provision. Store cards can be the easiest form of credit for consumers to access and its clear that unqualified shop staff should not be giving what amounts to financial advice and enticing consumers with offers. This invariably leads to a larger unaffordable debt problem later.
At Vincent Bond, we aim to provide a professional, friendly and transparent service for our customers as many come to us in deep distress due to their financial plight. We wouldnt be able to operate effectively without a strict set of guidelines we adhere to, so it goes against industry practice for credit to be offered to customers so easily, without any real checks that the customer can afford what they are borrowing. Unfortunately, the current simple credit checks are clearly ineffective, as the last decade has shown.
*Figures from The Department for Business Innovation and Skills recent survey on unsecured personal debt levels on credit cards, loans, store cards and additional credit deals.
For further information or to speak to Vincent Bond, please contact:
Laura Stevens on firstname.lastname@example.org or 07814390032
Notes to Editors
Vincent Bond and Co are UK based personal insolvency experts who provide specialist tailored debt solutions and personal advice to meet client needs in a friendly. professional and non-judgemental way. Services include debt management plans, individual voluntary agreements (IVAs) and bankruptcy procedures.
Vincent Bond and Co was founded in 2007 and has advised 20,000* individuals to date with personalised solutions in their quest to become debt free.
*Figures as of 20th January 2010