StepChange Debt Charity has announced Sir Hector Sants, a former chief executive of the Financial Services Authority as its new chair.

He is replacing Lord Wilf Stevenson of Balmacara who stepped down on Tuesday after five years in the role.

Sants brings to the role a “deep knowledge of the financial services sector”, the charity said, having previously worked for Barclays, the Financial Services Authority and the Bank of England. He joined the FSA in 2004 and promoted to chief executive in 2007 and resigned in 2010, but stayed to oversee the break-up of the body. 

Outgoing chair Lord Stevenson said Sants was the “ideal combination in terms of helping StepChange Debt Charity achieve its vision of a society free from problem debt".

Sants will take up his role on 1 July and existing board member, Sir Geoff Mulcahy, will take the role of interim chair in the coming months.

Sants is currently chair of the Archbishop of Canterbury’s Task Group on promoting responsible savings and credit and chief advisor to the board of the Abu Dhabi Global Markets, a government initiative to create an offshore financial centre.

StepChange Debt Charity specialises in providing advice and support for people with problem debt.

According to the charity, the number of people seeking debt advice has grown by more than 80 per cent over the past five years.

“Our ethos is founded on helping people to repay their debts where they are able to do so,” the charity said. “Where they cannot, we provide advice including where appropriate supporting them through insolvency processes.  We help them recover from a financial crisis and avoid such problems in the future.”

In a statement yesterday, Sants said: “I have admired the work which StepChange Debt Charity does in helping people in problem debt get back on their feet and the work they do in preventing the problem. I look forward to working with the dedicated board and staff and helping them to build on the momentum which has been achieved under Lord Stevenson’s chairmanship.”