Rocketing consumer debt levels and scant public sector resources have left the debt management industry facing unprecedented challenges in 2012, a group of credit professionals have warned. The consensus was reached by creditors, lawyers, debt purchasers and debt management representatives at a private round table debate held by Optima Legal in Scotland. For the free debt advice sector, the key challenge is whether the Money Advice Service will deliver a better debt advice offering in the face of increasing demand.

All sides agreed that more UK consumers are experiencing financial difficulty while regulation of consumer credit has increased, which is making effective debt collection and litigation more challenging and placing strain on the free debt advice sector. For lawyers, the key challenge is how to conduct effective litigation while remaining in the parameters of compliance. Denise Loney, Optima’s director of legal services Scotland, said: “The challenges for us are around compliance and presenting applications to the court that will......Read more here---: Consumer creditors face collection challenges in 2012