Blog · Debt Camel

How much will my credit score change if … ?

How much will my credit rating go up or down? That is a very common question. But it's often tricky to answer! This article has some guideline numbers from Experian that may help. These are only indications - your credit score may not go up or down by this much. They assume nothing else has changed on your record. They also apply to single issues. If you have two defaults already, getting … [Read more...]

Will my bankruptcy application be refused?

"Can I go bankrupt?" is a very common question. People worry that their bankruptcy application will be rejected because their debts aren't large enough. Or the Official Receiver will say they should repay the money they owe. Or that they don't meet the legal criteria. Or they have just borrowed some money. But less than 1% of bankruptcy applications are rejected by the Insolvency Service, … [Read more...]

Amigo’s 1st Scheme – key points to think about

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo's second Scheme for the latest news. On 25 January 2021 Amigo announced that it is proceeding with the next stage of its proposed Scheme of Arrangement and published the formal Practice Statement Letter (PSL) that describes the Scheme for the customers affected. This article looks at seven points … [Read more...]

Amigo – many customers may do better in Administration than a Scheme!

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo's second Scheme for the latest news. When Amigo announced it was proposing a Scheme of Arrangement in December, it said: Amigo continues to explore alternative options but it is likely the alternative options would result in those with Redress Claims receiving considerably lower amounts (if any at … [Read more...]

No calls or letters about a debt for years?

If its been several years since you stopped paying a debt and you haven't had any phone calls or letters for a long while, you may be hoping your debt has "got lost". Perhaps the debt collector has forgotten about it... Mr H has a typical situation: I stopped paying a loan at the start of 2016 when I lost my job. I have a Default on my credit file for June 2017. The bank sold it to a debt … [Read more...]

Is Amigo allowed to delay paying refunds? Does it have a DISP waiver?

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo’s Second Scheme for the latest news. When Amigo announced in December 2020 that it was seeking a Scheme of Arrangement to cap the amount it has to pay to customers owed refunds for unaffordable lending, it said: To ensure equal treatment of customers with Redress Claims, Amigo will stop the ongoing … [Read more...]

Emigrated and want to go bankrupt in England?

A reader asked: We are moving to Queensland, Australia very soon to live with family. We are both pensioners with no savings or assets and my husband has very large debts from a business failure a couple of years ago. We are hoping that once we get there we could get the money together for his bankruptcy fees. Will he be able to use the online application and file for bankruptcy? Before 2016, if … [Read more...]

Lessons from Amigo & Provident – FOS needs to be faster

In administration, customers with complaints at the Financial Ombudsman (FOS) have them returned to the administrators to resolve. The same happens in a Scheme of Arrangement which has been proposed by Amigo in December 2020 and by Provident in March - there FOS complaints are returned to the Scheme to be determined. FOS said in January 2021 it had about 13,000 open Amigo cases and about 500 … [Read more...]

Amigo’s Scheme – who’s next? Implications for the bad credit market

UPDATE - the FCA opposed Amigo's first Scheme on the ground that it was not the fairest possible for customers. The Scheme was rejected by the court in May 2021. Amigo proposed a new Scheme in December 2021, see Amigo's Second Scheme for the latest news. If Amigo's proposed first Scheme of Arrangement is allowed to go forward by the Financial Conduct Authority (FCA), what would be the impact on … [Read more...]

Will an Amigo Scheme of Arrangement abandon vulnerable customers?

A whole book could be written about the different ways vulnerable customers can have problems with guarantor loans - I wrote about some of them in Guarantor loans – why guarantors & borrowers need extra protection. But here are a couple of very recent cases for illustration. Case 1 - mental health problems The borrower informed Amigo when he made an affordability complaint in September 2020 … [Read more...]

Payday lenders – email addresses for complaints

If you want to get a refund for "unaffordable" payday loans, the first step is to complain to the lender. Often it's simple as the lender has a Complaints section on their website, but some have been taken over or the website isn't there anymore, so here is a list of their email addresses. For all these emails put AFFORDABILITY COMPLAINT as the subject of the email. If you haven't already … [Read more...]

Amigo first Scheme – my estimated numbers don’t look good

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo’s second Scheme for articles on the second Scheme. When Amigo announced it was seeking a Scheme of Arrangement on 21 December 2020, I said there were very few details and asked some questions. On 25 January more information about the Scheme was given. But there weren't any of the useful numbers I … [Read more...]

Amigo seeks refuge from refunds in a Scheme (December 2020)

UPDATES In May 2021 the court rejected the Amigo Scheme accepting the arguments of the FCA that it was not the fairest that could be proposed to customers. See Court rejects Amigo Scheme of Arrangement for details. In December 2021 Amigo published the proposals for its Second Scheme. See Amigo's new Scheme for the latest news. Amigo announced on 21 December 2020 that it is seeking … [Read more...]

I’m in a DMP – can I get a mortgage?

A reader asked about applying for a mortgage when she is in a Debt Management Plan (DMP): "I have been in a DMP for 8 years and still have 6 to go as I still owe £16,000. With hindsight, I should have gone bankrupt! My parents will give us a 20% deposit in 2021, but they don't know about my debts so I can't use their money to end the DMP. Will I be able to get a mortgage?" I've written before … [Read more...]

Will you get a Bankruptcy Restriction Order (BRO)? Does it matter?

Here are some recent questions from people worried about going bankrupt and possible Bankruptcy Restriction Orders (BROs): I gambled a lot but stopped over a year ago. I want to apply for bankruptcy, but will I get a bankruptcy restrictions order? I have credit card debts which I can't pay as I have had to stop work because of a disability. I went bankrupt in 2003 and had a DRO in 2015. Will I … [Read more...]