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Creditors urged to give debt advice information
People in debt will now get early advice from creditors, helping them to avoid court, in new proposals announced by Justice Minister Bridget Prentice today.
The proposals, in response to the consultation paper 'the debt claim process', will require all creditors to give people who owe them money information on how to contact them to discuss problems, and details of independent free advice providers in a letter before taking legal action.
Nearly nine out of ten respondents think such early advice would go a long way in helping people find ways to settle their debts.
Justice Minister Bridget Prentice said:
'Getting the right advice at the right time can make the difference between keeping your home or losing it.'
'Today's proposals give people a chance to look for ways to tackle their debts, where to go for advice and the different ways repayments can be managed. Enough time should also be set aside for the advice to take effect.'
'Being in debt can be frightening for most people and information given at the right time could reduce the number of people who get deeper and deeper into debt.'
'Most creditors send letters to those not meeting repayments to encourage either direct contact with them or contact through a debt advice provider, but this new step will make it the norm for everyone.'
In addition, from July, posters giving details of free advice providers will be displayed in all county courts to assist those currently having debt problems. A similar list will also appear later in the year on the online claim form 'Possession Claim on Line' used by creditors.
Proposals to change civil procedure rules to include these requirements will be recommended to the Civil Justice Council and the Civil Procedure Rule Committee.
Ministry of Justice
The proposals, in response to the consultation paper 'the debt claim process', will require all creditors to give people who owe them money information on how to contact them to discuss problems, and details of independent free advice providers in a letter before taking legal action.
Nearly nine out of ten respondents think such early advice would go a long way in helping people find ways to settle their debts.
Justice Minister Bridget Prentice said:
'Getting the right advice at the right time can make the difference between keeping your home or losing it.'
'Today's proposals give people a chance to look for ways to tackle their debts, where to go for advice and the different ways repayments can be managed. Enough time should also be set aside for the advice to take effect.'
'Being in debt can be frightening for most people and information given at the right time could reduce the number of people who get deeper and deeper into debt.'
'Most creditors send letters to those not meeting repayments to encourage either direct contact with them or contact through a debt advice provider, but this new step will make it the norm for everyone.'
In addition, from July, posters giving details of free advice providers will be displayed in all county courts to assist those currently having debt problems. A similar list will also appear later in the year on the online claim form 'Possession Claim on Line' used by creditors.
Proposals to change civil procedure rules to include these requirements will be recommended to the Civil Justice Council and the Civil Procedure Rule Committee.
Ministry of Justice
'No win, no fee' under scrutiny
A research based review of no win, no fee arrangements in England and Wales was announced today.
The study, by senior academics, will look at whether no win, no fee arrangements are still operating in the best interests of giving people access to justice.
Justice Minister Bridget Prentice said:
'No win, no fee arrangements are vital in helping to give the public a voice in courts. However, we are aware of growing concerns that they may not always be operating in the interests of access to justice.
'We feel that now is the appropriate time for a comprehensive, objective and evidence based examination of the operation of no win, no fee arrangements in relation to personal injury, employment and defamation cases.'
Professor Moorhead said:
'The controversies generated around no win, no fee agreements cry out for a balanced, evidence-based approach. We aim to provide that approach through generating evidence that respects and reflects all sides of the debate.'
Professors Richard Moorhead, Paul Fenn and Neil Rickman, will consider how best to:
The study, by senior academics, will look at whether no win, no fee arrangements are still operating in the best interests of giving people access to justice.
Justice Minister Bridget Prentice said:
'No win, no fee arrangements are vital in helping to give the public a voice in courts. However, we are aware of growing concerns that they may not always be operating in the interests of access to justice.
'We feel that now is the appropriate time for a comprehensive, objective and evidence based examination of the operation of no win, no fee arrangements in relation to personal injury, employment and defamation cases.'
Professor Moorhead said:
'The controversies generated around no win, no fee agreements cry out for a balanced, evidence-based approach. We aim to provide that approach through generating evidence that respects and reflects all sides of the debate.'
Professors Richard Moorhead, Paul Fenn and Neil Rickman, will consider how best to:
identify representative samples of claims data in personal injury, employment and defamation/privacy cases
examine the nature of funding arrangements in these cases and the outcome
identify random samples of clients and legal advisers that may help provide more detailed data about the understanding of quality and change within the legal services sector
analyse the unmet legal needs in the areas of personal injury, employment and defamation/privacy.
The professors are expected to report to ministers in the autumn. The report will help determine what specific aspects ought to be pursued in more detail and the feasibility of doing so.
New chairman of the Litigation forum at the CCR conference
Brian Havercroft will be the chairman of the Litigation forum at the CCR conference to be held in London in October 2008. In addition, he is a member of the Fees Consultative Panel of the Civil Justice Council and secretary of the Enforcement Law Reform Group. He has spoken at many conferences including both Credit 2007 & Credit 2008.
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