News
Debt Ridden Brits Claim Bankruptcy
Wednesday, May 7th 2008
A new study by online credit information provider Equifax has revealed that more and more Brits are claiming bankruptcy as they struggle to cope with their debts. The study claims that 130,000 people will be declared insolvent by the end of this year, a 30 per cent rise since last year. This is a very large rise in the space of just one year and Equifax are concerned that people are not aware of the long term drawbacks to bankruptcy. Another...Insolvencies on the increase
Wednesday, May 7th 2008
Figures published by The Insolvency Service have revealed that the number of people declared insolvent has risen for the first time in over 12 months in the first 3 months of 2008. The figures show that 25,264 people have been declared insolvent, which represents a rise of 1.7% compared with the last 3 months of 2007. Furthermore, there were 9,614 Individual Voluntary Arrangements (IVAs) and 15,651 bankruptcies reported during the period....Debtors to have their borrowing written off
Wednesday, May 7th 2008
Private debt advice companies and charities are to be given the power to write off part of an individual`s debts – whether the creditors like it or not. They will also be able to force creditors to accept a schedule of repayments for the remainder of the money owed, regardless of the lenders wishes. Creditors will not be able to petition for bankruptcy, nor will utilities be allowed to cut off gas or electricity supplies to clients of such...Working-class in debt by living middle-class lifestyle
Thursday, April 24th 2008
A study has found that approximately 2.7 million 'social climbers' have an average personal debt of £13,000 excluding mortgages. Worryingly, many have been re-mortgaging their homes in order to fund this luxurious existence. A spokesperson said the value in house prices is falling which means equity in their homes is going down by the day. With the mortgage meltdown, many will find it more difficult to re-mortgage. 2,000 respondents...Banks lose overdraft charges case
Thursday, April 24th 2008
The UK's biggest banks have lost a test case about overdraft charges. A judge has decided that the Office of Fair Trading (OFT) can apply consumer contract regulations to decide if bank overdraft charges are fair or not. But Mr Justice Andrew Smith said the judgement did not necessarily mean the charges are unfair. Further hearings are expected which may delay the cases of thousands of claimants trying to reclaim their charges in the...Security Industry Authority to regulate baliffs
Wednesday, April 23rd 2008
Industry proposal for alternative body dismissed by government The government is to regulate bailiffs through the Security Industry Authority (SIA) despite opposition from the industry. In its response to the consultation on the regulation of enforcement agents published last month, the Minister of Justice said there was "overwhelming agreement that there was a need for statutory regulation." However, it rejected the idea of creative a separate...Spiralling living costs cripple debtors on the poverty line
Wednesday, April 23rd 2008
Utility bill payments taking up a higher proportion of income Rising household costs and utility bills are dragging debtors under, two debt charities said last month. In its annual statement yearbook the Consumer Credit Counselling Server said clients living below the poverty line paid 23 per cent more for utilities in 2007 than four years earlier and suggested that many may be cutting back on fuel use to meet their financial...Credit Crunch Debt Outlook
Wednesday, April 23rd 2008
The Comsumer Credit Counselling Service (CCCS) says the credit crunch is starting to have an effect on consumer borrowing. In its annual statistical yearbook, CCCS says the increase in outstanding credit card balances in September marked the end of the steady decline seen over the past two years. It believes this may reflect an increased number of people unable to obtain secured credit and so resorting to unsecured lending. Meanwhile, it said...UK mortgage rescue plan could come next week
Friday, April 18th 2008
British authorities are working on a plan to break a lending squeeze gripping the home loan market and could announce details as early as next week, a source close to the situation said on Thursday. Pressure has been growing on the government and the Bank of England to do more to resolve a mortgage debt crisis that is threatening to slam the brakes on the British economy. News of possible swift action lifted sterling and boosted bank...OFT warns 13 debt agencies
Friday, April 18th 2008
After receiving consumer complaints about a number of agencies the Office of Fair Trading has issued a warning to the 13 companies telling them that they have four weeks to improve the ways in which they collect their debts. The complaints range from chasing consumers for payment of debts they did not owe to failing to carry out sufficient accuracy checks on data received from creditor clients and/or credit reference agencies. After four weeks...
