The government is considering the introduction of a protocol to improve standards in the debt management industry, a minister has revealed. Edward Davey, minister for employment relations, consumer and postal affairs, said the protocol would follow on from enforcement action taken against rogue debt management firms by the Office of Fair Trading, following a review of the sector.

A protocol already exists for Individual Voluntary Arrangements (IVAs) but Davey told an audience assembled at a conference organised by Credit Today’s sister title, Insolvency Today, that he would chair a working group later this year looking at whether a similar protocol could be introduced for Debt Management Plans (DMPs). Davey also revealed that a pilot scheme had begun between the Consumer Credit Counselling Service (CCCS) and the Citizens Advice Bureau (CAB) to assess ways to deliver best value debt advice in the free sector.

From April next year, the Money Advice Service (MAS) will have responsibility, backed up by government funding, to co-ordinate debt advice in the...Read more on this here---> Government mulls DMP protocol