Do You Feel Well Advised on Credit, Debt, Finance?

In a modern world these matters are crucial. Half a century ago in England and Wales and indeed in most of the world the mantra that was just starting to go out was: “Neither a borrower nor a lender be”.

But today the oil of society has become credit—and its siamese twin partner, debt. And most of us are borrowers who hold the debt.

Realisation has grown of this. In the past few years there has been a flow of legislation and regulatory duty to help the ordinary consumer. You and me. I was considering this when I came across the Financial Services Authority (FSA) consultation paper review, put out in April this year.

In its retail distribution review the FSA goes for a simplified structure where there would be independent advisers on financial matters, sales persons and organisations would not be advisers as well and a third arm would be the Money Guidance set up which I have this page on https://debtcontrolman.wordpress.com/money-guidance-developments/.

While I think this may at root be a good idea, I wonder how independent advisers will make their income without charging us. And wit the Money Guidance free advice service and such excellent charities as the Citizen’s Advice Bureaux and National Debtline.

Of course if advice and sales are mixed the inevitable leading will happen. Unless the agent has deals with all suppliers—quite a task.

But by splitting the tasks it may simply put an extra cost on the consumer. Presumably these qualified commercial advice specialists will have legal liability for their advice. That might be a good thing. But how many people will be attracted to advice with the costs and trouble of the qualification, the cost of legal insurance and the problems of attracting custom?

There is plenty of meat in the report, and I may return to it after the final report comes out in October. I just wonder how many people would seek advice from an independent advisor before making a purchasing decision.

Joseph Harris
Debt Control Man

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5 Responses to “Do You Feel Well Advised on Credit, Debt, Finance?”

  1. » Do You Feel Well Advised on Credit, Debt, Finance? Says:

    […] Find Free Articles. Submit Yours. Share AdSense Revenue. | Earnticle.com wrote an interesting post today onHere’s a quick excerptIn a modern world these matters are crucial. Half a century ago in England and Wales and indeed in most of the world the mantra that was just starting to go out was: “Neither a borrower nor a lender be”. But today the oil of society has become credit—and its siamese twin partner, debt. And most of us are borrowers who hold the debt. Realisation has grown of this. In the past few years there has been a flow of legislation and regulatory duty to help the ordinary consumer. You and me. I was considering this when I came across the Financial Services Authority (FSA) consultation paper review, put out in April this year. In its retail distribution review the FSA goes for a simplified structure where there would be independent advisers on financial matters, sales persons and organisations would not be advisers as well and a third arm would be […] […]

  2. Do You Feel Well Advised on Credit, Debt, Finance? : Dtv 2009 Says:

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  3. Credit Crunch » Do You Feel Well Advised on Credit, Debt, Finance? Says:

    […] alphauser wrote an interesting post today onHere’s a quick excerptIn a modern world these matters are crucial. Half a century ago in England and Wales and indeed in most of the world the mantra that was just starting to go out was: “Neither a borrower nor a lender be”. But today the oil of society has become credit—and its siamese twin partner, debt. And most of us are borrowers who hold the debt. Realisation has grown of this. In the past few years there has been a flow of legislation and regulatory duty to help the ordinary consumer. You and me. I was considering this when I came across the Financial Services Authority (FSA) consultation paper review, put out in April this year. In its retail distribution review the FSA goes for a simplified structure where there would be independent advisers on financial matters, sales persons and organisations would not be advisers as well and a third arm would be […] […]

  4. debthelpsolutions Says:

    I agree with your concerns, Joseph. its all too easy to dish out “the right advice” but when it comes to liability, companies are all to quick to wash their hands of the mess they have normally created due to ill advice.

    have a look at http://www.freeindex.co.uk/categories/financial_and_legal/personal_finance/debt_management/

    This lists some debt management companies with reviews from users. this will tell you whether they are FSA Approved etc.

  5. debtcontrolman Says:

    Thank you for your comment. I have left the link in for those who want to use it, but I advise people to do it themselves. I am hoping to offer considerable help on how to do that.
    I would just say to all those who do look up these companies that all people involved in credit and debt in England and Wales should have approval. The OFT issues Consumer Credit Licences to trade in credit matters, and the FSA approval should be an added assurance that the customer has recourse to appropriate procedures if things go wrong, and a valid expectation of good advice and care.
    Never deal with an organisation offering advice or help as an intermediary unless it has one or other of these. Always remember that no-one knows or understands your affairs better than you; if an adviser is not understanding, or gets figures wrong [I have experience of both] drop them like a hot cake.

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