Warning of non DEMSA registered Debt Management companies

Online, February 8, 2010 (Newswire.com) - Tim Moss, head of loans and debt at moneysupermarket.com, said: "We can expect to see around 30 per cent more applications for debt management plans this year and consumers have to be very careful when dipping their toe into this world, as it currently exists outside the realm of government regulation."

Moss continued: "We have heard of horrific cases where up to six payments are taken in charges before a creditor is paid, this means you will have paid lots of money to the debt manager before they have cleared a single penny of your debt."

"If you are going to use a debt management company you should only do so with your eyes wide open. Not being fully aware of all the charges involved could make a bad financial situation much much worse," he added.
Craig Gedey, Marketing Manager at Debt Advisory Line said: 'We are one of the DEMSA accredited debt management companies listed on Moneysupermarket.com.'

'It is vital that people seeking debt advice contact a DEMA accredited Debt Company. This means that the code of conduct, as set out by DEMSA is adhered to at all times.'

'People should also be aware that the DEMSA code of practice is approved under the OFT (Office of Fair Trading) Consumer Codes Approval Scheme (CCAS). This provides more confidence for people when dealing with debt management companies.'

Gedey added: 'The Debt Advisory Line were voted 'debt management provider of the year 2008 & 2009' and over 95 per cent our customers would recommend their friends and family.'

According to moneysupermarket.com high unemployment and rising interest rates are expected to drive a 30 per cent spike in the number of people seeking debt management plans in 2010.