The government unveiled a scheme today to guide those with
adverse credit problems how they should seek advice and resolve their adverse
credit problems.
Pre-action notices (PANs) will be sent by the courts prior to a claim being made by a creditor. The notices will detail the amount owed, advice contacts and options to resolve the adverse credit problems.
The notices aim to increase the number of claims which are resolved before the issue stage, and to increase contact between the debtor and
creditor to prevent the matter from going to court.
Baroness Cathy Ashton, parliamentary under-secretary for state at the Department for Constitutional Affairs, said the scheme "will mean that
debt problems can be resolved earlier without the need to go to court".
She said that this will save both debtor and creditor the cost and
stress of unnecessary or inappropriate court action regarding to adverse credit problems.
The scheme was currently restricted to
consumer debt but may be introduced more widely if successful, the baroness added.
A survey in 2004 by the Department of Trade and Industry found that five per cent of Britons found their consumer debt to be a "heavy burden".
