Wednesday 14th November 2007
Citizens Advice urges action to be taken to ensure lenders are held accountable for their customers levels of personal debt.
The consumer assistance service claims that regulators are not doing enough to place the blame on those who approve credit cards and personal loans.
At the organisations first-ever money conference in London last week, director of public policy Teresa Perchard voiced her concerns.
"Time and time again we come across people in desperate straits who need not be there if the firm who lent them money had acted responsibly on day one," she told delegates.
"And while some regulators have taken action on scandals like the mis-selling of payment protection insurance (PPI), others seem to be asleep on the job."
Some 1.7 million debt problems were reported to Citizens Advice last year, according to the organisation.
This is a record-breaking figure and an increase of some 20 per cent over the previous year.
Regulatory body the Financial Services Authority (FSA) continues its work to eliminate mis-selling of PPI and in September fined Hadenglen Home Finance £133,000 for failing to carry out its duty to its customers.
Director of enforcement Margaret Cole stated at the time that firms must put in place procedures which "minimise the risk of providing unsuitable advice" to clients.
She added that issues relating to PPI have been prioritised by the FSA since the start of general insurance regulation and will continue to be an area of focus.
The fines imposed took into account a 30 per cent discount because Richard Hayes, chief executive of the company, had agreed to settle the case early in the legal process.
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