EBYX Center

Presently there are increasing numbers of debt management companies desperately competing with one another trying to offer free debt advice. These organisations claim to be able to offer completely free no obligation debt advice. What really needs to be clarified is whether these businesses are providing the best value with regard to the services they offer and the information they offer?

The truth is the vast majority of customers do not fully understand their options regarding financial products and debt management generally. If customers had a proper understanding these debtors wouldn’t need expert advice from professional debt counsellors.

Identifying good debt advice can be difficult. Regardless of the difficulties it is essential to shop around where debt management is concerned. Debtors should not simply go with the first debt advice company that approaches them.

Debt counselling businesses are overseen by government agencies to ensure they are professionally qualified and properly manage consumer personal privacy. The problem is that it almost impossible to monitor or understand a companies motives when providing free advice. The question is, how is it possible for a regulator find out whether debt advice has been offered with the best interests of the customer at heart, or if recommendations given were was motivated by the advisers profit?

The reality is debt management companies are out to make a profit, it is possible that this will result in a conflict of interest between the consumer and the debt adviser. This is done by by referring debtors to alternative businesses or instead by charging arrangements costs from the companies to whom money is owed. It is therefore difficult to properly understand how effectively these businesses are actually representing their clients. The main concern is that these debt counselling companies could be inclined to give advice was driven by their own margins instead of providing the best option for their clients.