New measures will mean debt collectors will give struggling customers more breathing space when they face financial difficulties, it has been announced.
Under the proposals, those struggling with debts will be given 30 days before being pursued by a collector, who will have been informed an advisor is on the case.
Consumer minister Gareth Thomas comments: "This new 30-day rule will give people a breathing space to help them take control of their finances as well as encourage them to seek help from debt advisors.
"I welcome the CSA’s [Credit Services Association] recognition that this is an important and sensible commitment to have made to borrowers."
As of yesterday [April 6th], debt relief orders also came into effect, meaning those in deep levels of debt could have their order revoked.
This, Mr Thomas believes, will help ensure people are in control of their finances and treated fairly should they encounter debt management problems.
Recent research from Abbey found that Britons are needlessly paying out more than £9 billion pounds in credit card interest each year.