A Debt Relief Order (DRO) is a simple and cheap alternative to bankruptcy if you are renting and have little money to spare each month to repay debts. A DRO lasts for 12 months and during this time you must inform the Official Receiver (OR): if you receive any money or other assets, or if your income increases. If this happens, the OR may 'revoke' your DRO. That is the legal term … [Read more...]
DRO applications – frequently asked questions
A Debt Relief Order (DRO) is often the best debt solution if you have under £50,000 of debt, you are renting and you have hardly any spare money to repay your debts. You don't have to make any payments in a DRO and, after a year, your debts are wiped out. See What is a DRO? for an overview. This looks at the eligibility criteria and how to apply for a DRO. Here are some common questions … [Read more...]
Amigo Scheme – final payment of 6.01% will be paid in April 2025
UPDATE March 2025 - final scheme payment announced Amigo has announced the last percentage payment will be 6.01%. Together with the first percentage payment, this takes the total up to 18.51%. The amount you will receive will be a bit less than half the previous percentage payment you received. (If you have received 2 payments, the one from Amigo Loans was an "in full" refund … [Read more...]
What should the default date be & when will it disappear?
A default hurts your credit score, but how long for? That depends on the default date recorded on your credit file. If a the default date is too late, it harms your credit score for longer than necessary. The Key Rule to remember is "A default drops off after 6 years". This always happens, regardless of whether: you have repaid it in full you made a partial settlement you are still … [Read more...]
Credit cards – the minimum payment trap
Do you only make the minimum payments on your credit cards? If money is tight, you may feel you can't afford more... But do you know that there is a simple alternative that will speed up debt repayments a lot, not harm your credit record and not cost you any more? Repaying a credit card with minimum payments How long does it actually take? Suppose you buy something that costs £2,500 on a … [Read more...]
Problem overdraft? How to ask your bank for a refund of interest
Have you had big overdraft problems for a long period? You can make an affordability complaint and ask for a refund of overdraft charges if: your overdraft limit was set too high at the start or increased to a level you are unable to clear; or your overdraft usage showed you were in long-term financial distress. For example, being in the overdraft all the time, or using an unauthorised … [Read more...]
7 ways to save – which will work best for you?
Do you find it hard or impossible to save? many people feel they ought to be able save but always fail when they try. others are saving for a big goal but not as fast as they want. if you are struggling with money, you may desperately want a small emergency savings pot to make life a bit less stressful. There isn't a simple answer - no way is easy for everyone. What works for one … [Read more...]
Car finance commission – can you get a refund?
There are now two different types of car finance commission complaints, "discretionary commission" and "undisclosed commission". In January 2024, the FCA allowed car finance firms to "pause" their handling of discretionary commission complaints. Then in October, a major appeal court case covered a completely different reason for asking for a refund of car commission - it was not fully explained … [Read more...]
What to do if a creditor won’t freeze interest
What can you do if a creditor is still adding interest when they have been asked to stop? This can happen if you have a payment arrangement. It also sometimes happens, but much more rarely, in a Debt Management Plan (DMP). Most creditors do freeze interest if you have supplied a reasonable Income & Expenditure Statement. If you are in a DMP, your DMP firm will have sent the creditor … [Read more...]
Affordability refunds from large loans and car finance
The repayments on many loans and car finance are too high to be manageable so people get deeper into debt trying to repay them. When you applied, a lender should have checked a loan would be affordable for you - often they did not check properly and you should never have been given this loan. This article describes how to complain, with a template to use. Many people have won complaints … [Read more...]
How to get refunds from catalogues and credit cards
Have you had a catalogue, credit card or store card where your credit limit was too high? So high that the monthly repayments were hard to manage and you got into more debt? Many people were originally given an OK limit, but the lender kept increasing it too high. You may have a good complaint that the lender was irresponsible in allowing you to borrow so much that the debt was … [Read more...]
NSF’s scheme for Everyday Loans, George Banco & Trust Two – now completed
If you had an Everyday Loan or Evlo loan (their rebrand) that started after 31 March 2021, you can make an affordability complaint about this. This isn't through the Scheme discussed on this page, so you may get a larger refund. Use my "large loan template ". If your complaint is rejected, send it to the Financial Ombudsman (FOS) straight away, as that article explains. FOS will be able to … [Read more...]
Morses administration – more delays to the tiny distributions
Morses Club went into administration in November 2023. Morses Club was the largest doorstep lender in the UK after Provident stopped lending in 2021. See Morses Club goes under for details about why it failed. In March 2024, the administrators have sold or written off all outstanding loans. It is now expected that people who were promised refunds of hundreds or thousands of pounds in the … [Read more...]
Worried about starting a DMP? Answers to common questions.
A reader said she was scared about starting a Debt Management Plan (DMP). She was worried her creditors may not freeze interest and might take her to court. Another reader asked if he can get a new mortgage fix if he is in a DMP I thought it would be useful to look at the most common concerns people have about DMPs. Setting up a DMP Will I get lots of phone calls from creditors? You … [Read more...]
Can’t pay your bills & debts? What help can you get?
What help can you get if you can't pay your important bills and debts? If you don't think you can manage to pay everything, this article looks at your options for priority and nonpriority debts. And how to get help, with debts and with benefits. Get a budget & know what is top priority When there isn’t enough money to pay for everything, you have to make choices. It’s important to … [Read more...]
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