Entitled Not waving but drowning: Over-indebtedness by misjudgement, the report is written by Antony Elliott, the group risk director at one of the UK’s biggest banking groups for many years.  In all, he makes 15 recommendations to ensure that borrowers do not exceed their affordable level of debt – whether by their own misjudgement or financial naiveté, or as a result of irresponsible temptation from lenders.

The Rt Hon John McFall MP, Chairman of the Treasury Select Committee has already said that he will seriously consider the report’s recommendations, which are based on 36 in-depth interviews conducted with individuals and families, all of whom had sought debt management help.

According to Elliott:

“Once, bankers could be compared to doctors in the way they attempted to provide finance to a customer in his or her best interest. Now, they are more like bartenders, knowingly serving alcohol to people who are already drunk.  Countries such as France and Belgium have already tightened up their regulations in this area to help protect customers.

“My report doesn’t absolve borrowers of blame – and nor do they themselves.  One of my most intriguing findings is how many people who are over-indebted blame themselves for their situation. But I do believe that the industry’s sales practises and its reliance on automatic credit-scoring need urgent reform.”