A group of MPs have tabled a bill to force fee charging debt management companies to inform potential clients of the availability of free advice on debt management. Yvonne Fovargue, the Labour MP for Makerfield told Parliament yesterday (19 October): “I have bought this Bill to level the playing field between the fee-charging debt management companies, which can spend a considerable amount of money on advertising, and the free agencies, which put all their money into providing a service, and which consequently might not be as well known.”

Fovargue said people turn to the internet or advertisements, or even to a company that has cold-called them.

“If they are lucky, they go to a citizens advice bureau, but very few have heard of Payplan, National Debtline or the Consumer Credit Counselling Service, which could all help with free solutions tailored to the individual,” she added.
Fovargue told Parliament it is estimated that 375,000 people in the UK are on commercially provided debt management plans, costing them £250m in debt management fees each year. “The CCCS estimates that for a debt of £30,000, a client of a debt management company pays £6,000 in fees to that...read more here--> MPs table Bill on debt management