Today, we have published a call for evidence to provide individuals in debt with a ‘breathing space’ of up to six weeks to deal with problem debts.
Problem debt affects millions of people in the UK and we are seeking views to develop a way to provide individuals in debt with a ‘breathing space’.
What we are doing:
We have published a call for evidence on what this breathing space scheme should look like to provide individuals in debt with up to six weeks free from further interest, charges and enforcement action. This period would give those affected time to take action by seeking financial advice about how to manage and relieve their debt burden.
We will look at how people could access the scheme, what it would look like for creditors and debtors, and how to design a statutory debt management plan. The new scheme could include legal protections that would shield individuals from further creditor action once a plan to repay their debts is in place.
We are committed to helping people manage their debts and have already taken action to tighten consumer credit rules and crack down on pay day loans, saving borrowers over £150 million a year.