The standards that debt management companies must follow are being gradually tightened, meaning customers can have additional confidence that their interests will be safeguarded when they seek help with debt problems.

Debt management companies in the United Kingdom must hold a Consumer Credit Licence, which is issued by the Office of Fair Trading (OFT).The OFT regulates the debt management industry, along with many other business sectors, and has a range of disciplinary powers, with the ultimate sanction being withdrawal of the Consumer Credit Licence. 87 companies have exited the debt management market since 2010, either voluntarily or forced out by the OFT, so for firms who do not comply with their obligations, the consequences can be severe.

The OFT first issued its guidance for debt management companies in December 2001, and updated it in September 2008. This guidance imposes standards on firms in areas such as fee disclosure, advertising, fair treatment of customers and Data Protection.

In September 2010 the OFT conducted a compliance review to assess levels of compliance with its guidance. Following this review, the OFT announced it would be working with the two main debt management trade bodies - the Debt Managers Standards Association (DEMSA) and the Debt Resolution Forum (DRF) to drive up standards.

Both DEMSA and DRF have their own Code of Conduct or similar which places additional requirements on firms over and above the OFT requirements. These Codes place additional requirements on member firms in areas such as staff training, written and verbal disclosure and advertising. DEMSA and DRF can also investigate customer complaints and order firms to pay redress; and can carry out their own disciplinary investigations, with available sanctions ranging from warnings and fines to expulsion of a member firm from the trade body.

The OFT compliance review resulted in a further update to its debt management guidance being made in March 2012, which included new guidance on marketing, trading names and staff remuneration.

Standards in the industry are also under review by a Select Committee of the government Department for Business, Innovation and Skills (BIS). The Committee has noted that the debt management industry has grown rapidly in recent years, following the credit crunch, and there are more firms than ever before who offer help with debt payments. The Committee's recommendations are being considered by the Government.

So if you require assistance to manage debt repayments, take comfort from the fact that your debt management company will be regulated and will be obliged to treat you fairly.