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Press release: CMA concludes review of problem debt
Debt is one of the most significant problems for consumers in the UK today. The Competition and Markets Authority’s (CMA) review was launched in April 2014 and carried out on behalf of the Consumer Protection Partnership (CPP). The report analyses research and projects carried out by over 150 organisations working in this area, highlighting 4 key areas of work that are central to tackling problem debt effectively. These are:
The report shows that there are many organisations committing considerable resources to activities in these 4 areas, both within and outside the CPP. Although the CMA’s report did not identify any significant consumer protection issues which the CPP needs to address immediately as a collective group, the CPP is committed to keep matters related to problem debt under review. In addition, the CMA intends to look further at practices or markets that may generate particular problems for consumers with low incomes. In doing this it is keen to speak to, and learn from, organisations with an interest in the area. This work will relate closely to 2 of the CMA’s strategic objectives, refocusing consumer protection and extending competition frontiers, which were set out in the CMA’s Annual Plan 2014/15.
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- supporting financial capability: consumers need the skills to manage their finances and make sound financial decisions
- providing early debt advice: consumers who seek debt advice at an early stage are more likely to resolve their problems
- undertaking further consumer behaviour research: understanding consumer behaviours and decision-making may help regulators and debt advisors further to identify and assist consumers who are at particular risk of falling into financial difficulty
- pursuing enforcement and compliance: effective enforcement and supervision helps to drive compliance
The report shows that there are many organisations committing considerable resources to activities in these 4 areas, both within and outside the CPP. Although the CMA’s report did not identify any significant consumer protection issues which the CPP needs to address immediately as a collective group, the CPP is committed to keep matters related to problem debt under review. In addition, the CMA intends to look further at practices or markets that may generate particular problems for consumers with low incomes. In doing this it is keen to speak to, and learn from, organisations with an interest in the area. This work will relate closely to 2 of the CMA’s strategic objectives, refocusing consumer protection and extending competition frontiers, which were set out in the CMA’s Annual Plan 2014/15.
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