Debt Advice Advertising Faces Tougher Regulation | Debt Advice Foundation

Debt Advice Advertising Faces Tougher Regulation

The Committee of Advertising Practice recently revealed new rules to safeguard consumers against claims of ‘free debt management’ where monthly administration fees are charged. Unavoidable costs such as delivery and response expenses are exempt from the claim, however, any organisation charging an administration fee to manage a debt will not in future be able to claim the plan is free.

The Committee of Advertising Practice recently revealed new rules to safeguard consumers against claims of ‘free debt management’ where monthly administration fees are charged. Unavoidable costs such as delivery and response expenses are exempt from the claim, however, any organisation charging an administration fee to manage a debt will not in future be able to claim the plan is free.

Whereas 100% of the available monthly surplus goes towards paying back the debt in a free debt management plan, a typical commercial debt management administration rate is between 10% to 15% of the monthly payment. This equates to a fee of between £111 and £118 for every £1,000 of debt that’s repaid and also means that the debt will be paid back over a much longer period, between 11% and 17%.

To read the full article click here.

Helpine Logo
Helpline Callback

If you’re unable to call our free debt helpline number 0800 043 40 50 right now, you can fill in the form below and one of our advisors will call you back at a time of your choosing.

Call for FREE debt advice on


0800 043 40 50

Monday to Friday 8am to 6pm