If you haven’t engaged a debt adviser yet, choose one from the consumer credit register to ensure you get a properly qualified and licensed adviser. If you have already engaged a debt adviser, it is important that you are getting the expected level of service from them. This article provides some useful guidance on how to evaluate whether your debt adviser is doing a good job or not. It also suggests some remedies to resolve any poor performance. To evaluate your adviser’s performance, ask yourself the following questions.
Have I been taken in by misleading advertising?
This is a common area for complaints with debt advice companies. Businesses occasionally advertise services that they are not qualified to offer. Or their fee structures are not transparent and people can enter into agreements without fully understanding the charges involved, or that there are any charges involved. According to the Office for Fair Trading, the most common problem is advisers promoting their services as being free when they do in fact charge. Always read the small print on websites. This is often tucked away at the bottom of the page, so it is worth scrolling down to look for hidden information.
Am I being given the right advice?
Unfortunately, there are advisers around who are not properly qualified and trained or who may not have kept up with recent developments and changes in the law. This can result in people being given faulty or sub-optimal advice. Debt advisers have a duty to give you advice that is in your best interest. Occasionally, rogue advisers can recommend a solution that is better for the debt adviser because it might result in less work for them or a higher fee.
A good adviser should spend some time understanding your individual situation. This includes taking stock of all of the money you have coming in, your household outgoings, and your entire debt situation. They should also ask about your living arrangements, whether owned or rented and any dependents you have, whether children or older people. It is important that they build a detailed picture of your full financial situation because only then can they recommend the most appropriate solution.
Before signing any agreements, spend some time doing research into different debt solutions. The best source of advice is usually a person or organization without any vested interest. For example, Citizen’s Advice is renowned for providing fair and unbiased guidance on debt issues.
It is vital that you have good debt advice because poor advice can have long-term effects on you and your family. For example, a good debt adviser will try to come up with a solution that puts you in the best possible position. If you own a property and wish to retain it, then a good adviser needs to point out that an Individual Voluntary Arrangement (IVA) can mean having to remortgage your house and give up some of the equity.
Do I understand the fees involved
Sometimes, it is possible to get free assistance with some debt solutions. This is because they are a recognized service and they run on donations from the credit industry who appreciate the service that they offer. However, in most circumstances, there are fees to pay, especially with services like IVAs. These vary enormously between providers and it is vital to understand the costs before entering an agreement. A good adviser will explain carefully what the fee structure is and there should be no hidden payments.
What can I do if something has gone wrong?
If your debt adviser is not doing an effective job for you, whether that is because of misleading advertising, failing to be honest about their fees, or not giving you the most appropriate advice, you can complain. The Office for Fair Trading has an official scheme in place for dealing with complaints about debt advisers. If all else fails, you can appeal to the financial ombudsman. they are responsible for businesses that offer financial services.