Debt advice charity: Lenders must be more sympathetic

Debt advice charity: Lenders must be more sympathetic Thursday 29th May 2008

A debt advice charity has urged lenders to take a more sympathetic approach to their clients' debt problems.

Mind was moved to issue the call amid predictions that UK bankruptcy levels are set to soar this year, fuelled by the rising cost of day to day living as well as higher mortgage repayments.

In particular, the charity is asking loan providers to end practices such as calling debtors "from eight in the morning until eight in the evening" as well as sending multiple threatening letters, which it claims is putting undue stress on those affected.

A spokesperson for the debt advice charity said: "As you can imagine, if people are behind payments on multiple bills they might be receiving correspondence from other financial organisations as well, so for some people it really is quite intense.

"Our survey found that 91 per cent of people had said that being in debt had made their mental health problems worse."

News of the call from Mind comes after data from the Insolvency Service highlighted the rising debt problems being experienced by Britons.

Individual voluntary arrangements (IVAs), under which interest on debt is frozen in return for a set amount being repaid each month, jumped by 4.3 per cent during the first three months of this year compared with the end of 2007.

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