Consumers are being penalised for attempting to sort out their financial problems by themselves, it has been claimed.
A leading charity is calling for the implementation of a new model of practice for self-help debt advice. Citizens Advice claims consumers who try to manage their debts without the help of an advisor are being treated unfairly.
According to the organisation, almost 60 percent of people who have tried to negotiate affordable repayment plans with their lenders instead of asking an advisor or debt agency to act on their behalf have had their requests rejected.
It insists the credit industry must change the way it assesses offers made by customers using self-help debt advice and suggests that a new model of practice be agreed between the credit, debt collection and advice sectors to develop a consistent way of delivering such advice.
Citizens Advice chief executive David Harker told the Press Association: "As the current credit crunch and rising food and fuel costs are likely to result in more people needing help managing their finances, it's important that those who want to and are able to can negotiate with creditors directly without the risk of being treated unfavourably."
Figures from Credit Action show that at the end of September 2008, total UK personal debt stood at £1,457 billion - an increase of 5.4 per cent compared to the same month last year.
