Government announces review of debt management issues

A government review of issues relating to the UK debt management landscape is to focus on consumer credit and personal insolvency.

The review, announced this week by the Department for Business, Innovation and Skills (BIS), is due to look at what happens when debt management attempts fail and the preparations that are in place for dealing with that situation.

Separately, the kinds of issues that are commonly faced both by borrowers and by their creditors over the course of a loan are set to receive consideration.

Consumer affairs minister Edward Davey explains the reasons why the government has opted to review the existing system for lending and insolvency.

"This is an opportunity not only to improve the safeguards on consumer credit products, where this is necessary," he says.

"It's also a chance to cut unnecessary regulatory burdens."

BIS is currently focusing on a number of areas relating to consumer credit, including enhancing the clarity of credit card information and giving regulators powers to prevent excessive rates from being charged by lenders.

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