CAB accuses financial regulators of sleeping on job
November 19, 2007
Financial regulators in the UK have been accused of being ‘asleep on the job’ by an official from the Citizen’s Advice Bureau.
CAB officials are concerned that many lenders are pushing consumers into higher and higher levels of debt, and that the financial services industry is doing little to stop this irresponsible lending, thus fuelling rising levels of consumer debt that are already causing concern across the UK.
According to officials from the Citizen’s Advice Bureau rising debt levels are one of the major concerns facing the economy in the UK.
One official from the CAB stated: “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. And while some regulators have taken action on scandals like the mis-selling of payment protection insurance, others seem to be asleep on the job.”
The Cab also revealed that the level of debt related cases that it has to deal with has risen, with over 1.7 million debt related cases over the past twelve months reflecting a rise of 20% on the previous year. Cab officials stated that the charity is doing all that it can to try and help consumers with their debt problems, but added that increased responsibility and action is needed from the financial services industry.
The Citizen’s Advice Bureau has embarked upon a program to help consumers to deal with money matters, and this lack of action fro the financial services industry has been brought to light as a result of this campaign. Since 2002 spending on plastic has increased by 50% according to recent figures, although the Bank of England claims that since 2006 there has been a drop in the amount of money owed on credit cards.
Alan Wright
19th November 2007
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