Debt management rules to ‘better protect consumers’

The Central Bank has published new rules governing debt management firms which it says will offer greater protection to consumers in dealing with an industry that was completely unregulated up to a year ago.

Among the revisions to the Consumer Protection Code is a ban on debt management firms from arranging additional credit for consumers for the purpose of paying fees or charges arising from the use of debt management services.

Companies will also be prevented from paying third parties for client referrals or client leads which is aimed at reducing the likelihood of consumers not previously engaged by debt management firms from contacting them.