The Financial Guidance and Claims Bill – What it will mean for you
25/01/2018 The Financial Guidance and Claims Bill is currently making its way through the House of Commons, and it looks like it’ll have big implications. We’ve examined the latest news from the House of Commons and run through the positive changes the Bill could make for consumers!
The Bill is has not yet come into effect, and we will keep you updated with any developments as and when they happen.
Single place to get debt advice
The Government has said that it is interested in making it easier to get advice on debt, and plans to make a single place to get financial guidance, combining the important work done by the Money Advice Service, the Pensions Advisory Service and Pension Wise.
This should make it easier for people to find information on debt, pensions, and other financial matters. Everyone should have easy access to this guidance, and know where to get it. It should also improve the service offered to people, making it simpler for people to manage their money effectively.
Additional support for those struggling with debt is extremely valuable – especially as research shows that research by the Royal Society of Arts shows that 30% of UK workers are concerned about their level of debt and 43% of workers don’t have anyone in their household to support them financially in the event of hardship.
New breathing space scheme
The Government has said that the Bill will introduce advice on a new ‘breathing space scheme’, which may allow people struggling with extreme debt to apply for a bit of breathing space – a period in which they won’t be hit by any extra fees, charges or visits from debt collectors.
The Bill will finally ban pensions cold calling! In addition, the bill may be extended to cover cold calls from claims management firms. Great news for those who are plagued by unsolicited calls and texts.
Claims management firms
The Bill will clamp down on PPI claims management firms by introducing a cap on the fees they can charge of 20% on the total compensation amount.
This is great news, as people shouldn’t have to worry about unscrupulous claims managements firms taking money they’re due – especially when PPI reclaims can be filed at home, for free with Resolver.