Have you received scary letters from a debt collector demanding payments? These letters may threaten defaults, county court judgments (CCJs) and bailiffs taking your possessions. Sometimes the letters are bluffing, but the number of CCJs is continuing to go up. In the first half of 2019, there were 586,765 CCJs and more than half were for less than £650. This article covers consumer debts … [Read more...]
Who should you tell before you go bankrupt? And afterwards?
It is normally a good idea to tell your creditors if you are in financial difficulties, not ignore them. So should you tell people you are planning on going bankrupt? And who do you have to tell afterwards? Before bankruptcy - you won’t gain from telling your creditors Few creditors will feel sorry for you and stop pestering you if you tell them you are going bankrupt. So you aren’t … [Read more...]
What to do if you get a Claim Form
If you receive a Claim Form from a County Court through the post you need to respond rapidly. Ignoring court papers is a bad idea, even if you think the debt is too old or you are worried you can't pay the money. If you agree you owe the money you will get a County Court Judgment (CCJ) but if you complete the Claim Form papers properly you will be able to make monthly payments and won't … [Read more...]
“Can mortgage lenders see old debts, no longer on my credit record?”
A reader asked: I know a debt drops off my credit file 6 years after it was settled or defaulted. I just want to ask when I apply for a mortgage, can the lender dig up unpaid debts if they are no longer showing on my credit report? This is a common question. The answer is Yes, sometimes because a lender can see other information that may show the debts. Let's look at what the lender can see, … [Read more...]
Is your pension safe if you go bankrupt?
If you expect to go bankrupt soon you may be worried about whether your pension will be safe. The Insolvency Service published a summary of its new guidance on pensions and bankruptcy in England and Wales in 2015 after the "Pension Freedom" changes that year made it possible for many people to take money out of their pension from age 55, even if they are still working. There was some legal … [Read more...]
Holding Money & Debt up to the Light: Transparency and the Standard Financial Statement
This is a guest post by Dr Joseph Spooner, Assistant Professor of Insolvency Law at the LSE and the author of Bankruptcy – the Case for Relief in an Economy of Debt. He had previously worked at the Law Reform Commission of Ireland, where his papers influenced the enactment of the Irish Personal Insolvency Act 2012. Systems for addressing difficulties of over-indebted households in England … [Read more...]
Can guarantor loans be included in DRO / IVA / bankruptcy ?
A reader asked: I have 5k debts and I’m now on ESA. I'm also a guarantor for my mum's Amigo loan - could that be included in a Debt Relief Order (DRO)? There are three types of personal insolvency in England: bankruptcy, IVAs and DROs. Normally if a debt can be included in one form of insolvency, the same applies to the other two. But for guarantor loans, it's more complicated. So this … [Read more...]
How to ask QuickQuid for a payday loan refund (old article)
UPDATE - on 25 October, CasheEuroNet which owns ate QuickQuid, Pounds To Pocket and On Stride brands went into administration. See QuickQuid goes into administration – what will happen for details. That article will be updated with any more news. This article will not be kept up to date. QuickQuid (QQ) and its smaller brand Pounds To Pocket (P2P), which in February 2019 rebranded as On … [Read more...]
“£20,000 credit card debt due to gambling – what should I do?”
A reader asked: "I have nearly £20,000 in credit card debts due to 8 years of gambling addiction. I asked several times to lower my interest, defaulted a couple of times and also they could see gambling on my account yet they still increased my credit limits. I was taking cash advances to pay for food. I have not gambled for 18 months now, but I am left with this horrible debt that I cannot … [Read more...]
“I have a CCJ for a guarantor loan – is it too late to complain?”
A reader asked: I agreed to be the guarantor for a loan for a friend, but he lied to me and couldn't pay it. Amigo were very difficult, wanting me to stop paying other debts so I could pay them, and got a CCJ. Is it too late for me to complain and ask to be removed as the guarantor? Guarantor lenders have a reputation for being very fast to go to court when a guarantor doesn't pay them. People … [Read more...]
How to complain when you are the guarantor for a loan
UPDATE: Do not use the template on this page for Amigo, Buddy, George Banco, Trust Two, Glo. It is now too late to complain about them. For TFS see TFS Loans goes into administration. If you are a guarantor for a loan you can ask to be removed as the guarantor: if you couldn't afford to repay the loan without difficulty; or you were pressured into becoming the guarantor; or … [Read more...]
UK credit records & scores – not fit for purpose!
In summer 2019, the Financial Conduct Authority (FCA) has started a Credit Information Market Study. In the consultation on its terms of reference, the FCA asked: Do you consider that the credit information market is working well? I think it has grown up over the years into a poorly understood, complex system which has many problems. It isn't working well for consumers or lenders. The … [Read more...]
“Lender says I lied – what should I do?”
Some lenders responding to affordability complaints by saying your application wasn't accurate about your income or expenses when you took out the loans. They are doing this to try to put you off taking your case to the Financial Ombudsman. That may save them a lot of money! Let's see why applications may have been inaccurate and whether this is a problem for your complaint. Most of the … [Read more...]
Why the Ombudsman released a guarantor from a loan
The Financial Ombudsman (FOS) has recently published two important decisions about guarantor loans, one where a borrower complained and one where the guarantor complained. I have covered the borrower case here: Ombudsman – Amigo did not check properly that a borrower could afford the loan. This article looks at the FOS decision about the guarantor for a loan. I have selected points from the … [Read more...]
Ombudsman – Amigo did not check properly that a borrower could afford the loan
The Financial Ombudsman (FOS) has recently published its decision on Miss G's complaint against Amigo. This FOS decision criticised Amigo's inadequate assessment of Miss G's income and expenses. It said her poor credit record meant Amigo should have verified the figures, for example by looking at bank statements. So FOS ordered Amigo to refund all the interest and charges she paid, plus 8% … [Read more...]
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