The Debt Managers Standards Association (DEMSA) has finally achieved OFT code approval in November of this year. DEMSA had expected to receive code approval in the summer of 2007, however the greater emphasis on debt management in the market place and the growing importance of IVA plans prompted the OFT to review their Code Approval Scheme. DEMSA redrafted and resubmitted it’s code of conduct to the OFT to include IVA’s (Individual Voluntary Arrangements).

DEMSA is one of only eight trade associations in the UK to have received this type of approval from the OFT. In order to achieve the high standards, required by the OFT, DEMSA has had to undertake an ongoing monitoring programme which will include customer satisfaction surveys and mystery shopping exercises as well as carrying out regular visits to the members.

The news has been welcomed by many creditors including banks, credit card companies and debt collection agencies. The code approval will allow these organisations to distinguish between companies that stick to a strict code of conduct and those that do not.