Citizens Advice has released a report on best practice in debt collection in collaboration with banks, utility companies, debt collectors, government agencies, bailiffs, other creditors and debt charities.
The report uses existing examples of good practice to demonstrate the key principles that help people overcome their debt problems, and is backed by the British Bankers’ Association (BBA) in collaboration with the debt charity.
It has been produced by the Addressing Financial Difficulties good practice working party (the AFD), which was created in 2010 and is chaired by Alex MacDermott, CAB creditor liaison policy officer.
Representatives from over 40 firms from 18 sectors sit on the AFD – including banks, credit card companies, utility suppliers, water companies, local government, debt collectors, bailiffs and advice providers.
“Bad debt collection practices can have dire consequences and often make things worse by pressurising the person in debt to pay more than they can afford,” said Gillian Guy, chief executive of Citizens Advice.
“People’s homes, relationships, health and wellbeing are all at risk as a result. This report – which is packed with examples of good practice – outlines some clear steps creditors and advice providers can take that will benefit everyone concerned, not just those in debt. It shows that some creditors and advisers are already doing the right thing and that these steps really work.”
Guy also called for consumers to work with debt charities and their creditors to ensure that the best practice recommendations work.