Have you had problems with payday loans? You can get a refund of the interest you paid on "unaffordable" loans. It’s easy to ask for a payday loan refund using the free template here. This works if your payday loans were repaid or you still owe money. What are “unaffordable” loans? The regulator says: “the borrower should be able to make the required repayments without undue difficulty, … [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...]
“My DMP payment is too high”
A reader asked if it is OK to reduce your debt management payments when you need to? This is a common problem in Debt Management Plans (DMPs). Sometimes your income falls. Often your essential expenses go up faster than your pay does. In debt management, you pay a set amount to the DMP company and they divide it between your creditors. So what happens if you can no longer afford that monthly … [Read more...]
Should I stop debt payments before my DMP starts?
A reader asked: My StepChange DMP will start in 2 months time, in October. Do I have to make the payments to my creditors in September? Because it's going to be a real struggle. Could I offer them less? I asked what her StepChange monthly payment will be, It's going to be about £250. She said: I need to admit that this feels life-changing. Why did I not do this last year? I can’t believe I … [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...]
Will an affordability claim hurt my credit record, and other questions
People often ask what happens to their credit score if they make a complaint. And what happens if they still owe a balance on the account. Here are some typical questions: " Lloyds increased my overdraft limit several times a few years ago when I had a gambling problem. But I have recovered and am hoping to get a mortgage soon. I don't want to complain if it will it harm my credit score, which is … [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...]
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...]
DMP FAQs – if you are worried about a DMP, read this
A reader said she was scared about starting a Debt Management Plan (DMP). She was worried her creditors might not freeze interest or could 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 questions I get asked 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...]
Debts – why, how & when to ask for the CCA agreement
The Consumer Credit Act (CCA) gives you the right to be sent a copy of your credit agreement and a statement of your account for most loans, credit cards, catalogues, store cards and Hire Purchase agreements. CCA agreements are important! If a creditor can't find it then: you can't get a CCJ for the debt; and you may decide to stop paying the debt. Sometimes asking for a CCA … [Read more...]
“Will a credit builder card improve my score?”
Four million people in Britain have a credit card specifically aimed at people with a bad credit rating. These cards have interest rates of 30-70%. A standard interest rate on a normal credit card is about 20-28%. Brands include Vanquis, Capital One, Aqua, Ocean, Marbles, Zable and 118. Some normal credit card lenders like Barclaycard have a specific bad credit product available. They are all … [Read more...]
7 ways to speed up a DMP so it finishes sooner
A reader asked: I'm being told a DMP would take more than 10 years. Is that too long - I hope my situation will improve? Ten years is a long time. But lots of things can happen during a Debt Management Plan (DMP) which will change the time it may take. Here are seven ways the DMP could be speeded up - not all of them may apply to you. 1. No DMP fees If the DMP firm you are talking to charges … [Read more...]
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