Blog · Debt Camel

A takeover bid for Provident (PFG) by much smaller NSF

Non Standard Finance (NSF) has made a surprise bid for the much larger Provident Financial Group (PFG). The story so far: NSF made a bid on 22 February; it was rejected by PFG on 25 February; PFG and NSF have a large share of the doorstep lending market, so on 26 February the CMA issued an Initial Enforcement Order. Every debt adviser will be familiar with "the Provvy" but it's … [Read more...]

Debt news – February 24

My pick of last week's news is the bid for Provident - and respect to the Times sub who came up with the headline Provident doorstepped by surprise £1.3bn offer. It's nice to have some good news with ending charging for DMHEFs moving a step closer: The BMA agrees to #StopTheCharge Tweet of the week Disabled mum who killed herself failed by benefits agency https://t.co/SFXWJWmpo2 — … [Read more...]

Wageday Advance – website down as FCA decision looms

Update: on 26 February the FCA announced that Wageday Advance has gone into administration. See Wageday Advance (WDA) goes under – pre pack sale to Morses Club for details. The UK payday lender Wageday Advance (WDA) is currently not lending, as its website has been down for at least three days as of 22/02/19. It is blaming technical problems: We're experiencing some technical issues with … [Read more...]

Voluntary Termination (VT) – how to end your car finance early

When you are buying a car on finance you have the right to hand the car back and end the agreement. Depending on how much you have paid, you may not need to pay any more. This is known as Voluntary Termination (VT). It applies if you have an HP or PCP finance agreement. This article explains your rights and what you have to do to VT your car. The finance companies don't like this - they … [Read more...]

Islington Council & Debt Hacker – settling the score with payday lenders

This is a guest post by Councillor Andy Hull, Islington Council’s Executive Member for Finance, Performance and Community Safety and Alan Campbell, the founder of Debt Hacker. For many of us, it only takes one unexpected expense or change in circumstances to throw our finances out of kilter. Since 2006, payday loan companies operating in the UK have been profiting from people’s urgent need … [Read more...]

Debt news – February 17

My pick of last week's news is the evidence on bailiffs submitted to the Ministry of Justice consultation. Tweet of the week A reader gets a refund of more than £20,000 from Provident - https://t.co/fg1YpwClyH pic.twitter.com/bOBohw8RXE — Debt Camel (@DebtCamel) February 14, 2019 Debt news Bailiffs: This is the moment to reform the bailiff industry for good MAT blog what … [Read more...]

Don’t let credit rating worries make your debts worse

If you have too much debt, you may not want to do anything that will harm your credit score. But do you have any better alternatives? That depends on three factors: what is your credit record like at the moment? If it isn't good, then it isn't worth trying to protect! Check your credit score now, so you have accurate information. can you make the monthly payments to your debts? The … [Read more...]

What happens in an IVA if I am made redundant?

Losing your job can be a big problem for your IVA unless you can get a new job quickly. Having redundancy pay can help through this period - but some of your redundancy pay may have to be paid into your IVA. Here I'll describe what the 2016 IVA protocol Individual Voluntary Arrangement says. Most IVAs have similar provisions for redundancy. It's a good idea to check your own IVA paperwork and, … [Read more...]

Debt news – February 10

My picks of last week's news are the Ombudsman Newsletter and Is this the worst loan in Britain? Tweet of the week CIVEA calls for less bailiff bashing. @CitizensAdvice saw 94,000 issues with council tax arrears last year, and a third of those were involved with bailiffs. “People wouldn’t be coming to us if they weren’t having problems with their enforcement” — Rose Derricourt … [Read more...]

Are 35 or 40 year mortgages a good idea?

Mortgage terms are getting longer, especially for first-time buyers. In 2006, fewer than two in five first-time buyers had a mortgage that was more than 25 years. In 2018, the average mortgage term was 30 years for a first-time buyer and more than two-thirds were over 25 years. Very long mortgages are also becoming more common. In 2017 15% of new mortgages were for 35 years or more. But … [Read more...]

Is this the most expensive loan in Britain?

A reader recently told me he had taken out a loan for £650, with 18 monthly repayments of £147. This adds up to a total repayment of £2,650 - an eye-watering amount and more than four times what he borrowed. At first I thought this was probably taken out several years ago. But in fact, it was borrowed in 2018 from Loans2Go. Here is a snapshot of the personal loan page on the Loans2Go … [Read more...]

Options if you have an interest-only mortgage

160,000 interest-only mortgages will be ending in 2019-20. And many more families will have interest-only mortgages ending after 2020, with a big peak in numbers in 2027-8 and in 2032. When an interest-only mortgage ends, you have to repay all the amount you borrowed. The money to repay it can come from three sources: savings or investments; by getting a new mortgage; or by selling … [Read more...]

IVAs in 2018 – numbers jump and so do failure rates

On 29 January 2019 the Insolvency Service published two sets of statistics for 2018: Insolvency Statistics: October to December 2018 Individual Voluntary Arrangements: Outcome Status 1990 – 2017. Here are what I think are the three most interesting points. 1. IVA numbers again rose faster than bankruptcy & DROs In 2018 IVAs increased by 20%. Already the most common type of … [Read more...]

How long do IVAs last? And how many fail?

If you are thinking of starting an IVA, you will hear that IVAs last for five years, sometimes six. But find out the facts - as that is misleading. The IVAs may have been expected to last for five or six years at the beginning, but payment breaks and extensions mean that many last for much longer. The Insolvency Service's IVA Outcomes - 2018 has data about how many years IVAs usually last … [Read more...]

Debt news – February 3

My pick of last week's news is the MAT blog on the Breathing Space consultation. Video of the week Debt news 'I ended up with a £620 charge': Virgin Money customers complain after applying for replacement credit card that defaulted to minimum payments Mail: "Rae applied for the card again as a new customer, and found there was no option to pay anything else other than the minimum … [Read more...]