Charity Debt Advice To Be Affected By Cuts In 2012posted on 30 December 2011 | posted in General Category | ( 0 ) CommentsThe Citizens Advice Bureau and other debt advice giving charities are facing cuts to funding in 2012 which will lead to many a problem when advising people with debt. Cuts will affect nearly 500 debt advisors who have already seen cuts to legal aid and local government grants. Most of these advisors could now face being made redundant. News that the fund was to be discontinued was given by Mark Hoban MP, Financial Secretary to the Treasury. Recent inside talk in the treasury has all but confirmed this will happen in 2012. With the government already making huge cut backs and with more to come through 2012, this will inevitably lead to more pressure on the CAB as it already has big issues with lack of specialist expertise in areas such as debt help, and it is already lacking in resources. We now know that the CAB will face further funding cuts, and this can only lead to more problems with the public receiving debt advice. Legal Action Group (LAG) learnt that the Financial Inclusion Fund (FIF) would end in March 2011 but this was extended by the government for an un-disclosed amount of time. FIF pays for just under 500 debt advisors based in Citizens Advice Bureaux and other not for profit (NfP) advice centres. LAG believes this will be a devastating blow to many of the centres as they are also facing further cuts in legal aid and local government grants. We have seen in the past year, numerous complaints from people who have not received the right advice regarding debt after approaching the CAB, and in a time where debts are increasing and more and more people are struggling, this is leading to more pressure and distress for the person in debt. In some cases we have seen an increase of the CAB simply passing people over to 'IVA factory" companies for them to deal with the individuals debt problem, without first looking at that persons real debt problems and seeing if another debt solution would be better for them. If this is the case and it is increasing, then there is a clear problem with the way that the CAB is handing out debt advice to the public. It may be 'free' debt advice and help, but when they pass people to a 'selected' company of their choice it no longer becomes free. Quite often the person is then charged huge fees for a solution that may be the wrong one for them, such as and IVA (individual voluntary arrangement) or DMP (debt management plan). However the CAB are not the only charity passing leads like this. The government decided to scrap Consumer Focus and let the CAB deal with consumers, which has lead to all sorts of problems right across the country. It has left the public to rely on an overstretched network of volunteers to investigate multi-million pound consumer complaints about big banks, airlines and energy providers, as well as trying to advise on personal debt problems. We advise people to seek professional debt help from specialist industry experts like ourselves, who can look at the debt and advise on all the UK's different debt solutions. This way the individual gets the best advice and is totally clear on a way forward to get themselves out of debt without being lured into an expensive solution that simply does not fit their needs. Debt is going to be very much in peoples faces during 2012 so please call us now on 01743 272900 if you have any concerns. We can make you debt free whatever your situation or background is, providing full support every step of the way. (Author: Darren Perks) Share this blog entry:
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