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Debt advice weekly round-up

21/05/2010

The Financial Ombudsman Service's (FOS) annual report and changes in Payment Protection Insurance (PPI) dominated this week's debt solution news.

The FOS report showed that they had dealt with over 900,000 (925,095) complaints over the year to March as people sought to ease their financial problems.

One complaint in three was about how PPI was sold, but less are expected next year as the government banned their sale when loans are granted to help customers ward off financial problems by shopping around. Worryingly, in 31.5 per cent of cases referred to FOS, consumers paid for someone to represent them, most of these involving a claims management Company.

However, this is being contested by Barclays who thinks that it will inconvenience the consumers.

Consumers may be in need of professional debt advice as inflation rose again. The Office for National Statistics (ONS) has reported that the consumer prices index (CPI) rose by 3.7 per cent in the year to April. This comes as the CBI calls for a two year pay freeze in the public sector.

In other news, millions could need a Debt Management Plan (DMP) in their retirement, as only one person in five (19 per cent) seeks professional advice when considering what to do once they finish work when net income typically drops by over 30 per cent.

And there's worrying news after R3 revealed that nearly a third (31 per cent) of people who have filed for bankruptcy or an Individual Voluntary Arrangement (IVA) are still being harassed by creditors, even though they should be protected by law. ADNFCR-2613-ID-19791631-ADNFCR