Third Party Deduction Scheme under fire

February 2005
Credit Control;2005, Vol. 26 Issue 2, p53
Trade Publication
This article reports that according to a new report published by Citizens Advice, plans to allow credit unions and commercial loan companies to siphon off debt repayments direct from welfare benefits could leave many vulnerable people without enough money to live on. Under the new proposals, the third party deduction scheme would be extended to credit unions and commercial lenders to make it easier for people on low incomes to get credit, and prevent court action being taken if people cannot repay their debts. But Citizens Advice has warned that the new proposals could cause significant hardship, and argues that even if the existing scheme is not extended, it still needs a thorough overhaul and review.


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