This post was written based on statistics published in 2022. Since then, statistics have been complicated by the special measures during COVID that temporarily prevented many IVAs from failing. Statistics published in early 2024 show: one in three (33%) IVAs that started between 2016 and 2018 failed of IVAs that started in 2022, 5.6% failed in the first year. This was about the same as … [Read more...]
Voluntary Termination (VT) – how to end your car finance early
When you are buying a car on HP or PCP finance, you have the right to hand the car back and end the agreement. This is known as Voluntary Termination (VT). Depending on how much you have paid, you may not need to pay any more after VTing the car. In 2024, many people are struggling to pay their car finance, with mortgage/rent, childcare and car insurance rising so fast. See Can you afford … [Read more...]
Can you afford your car finance payments?
Can you afford your monthly car payments? You may have lost your job or be worried that may happen. You or your partner may have had their hours cut. Or your business may be making less money. Or your other bills may have gone up a lot. Mortgage, rent, petrol, energy bills, council tax, food... What sort of car finance do you have? This article looks at your options if you have a Hire … [Read more...]
Why the FSCS doesn’t cover payday and other lenders
In 2018, when Wonga went into administration, people started asking why the Financial Ombudsman (FOS) can't still look at Wonga complaints? And if FOS can't, is there is a guarantee system that would step in if Wonga fails, such as the FSCS? This has become more important every year since then, with most of the major payday lenders failing, including the Money Shop, QuickQuid, Sunny and … [Read more...]
ICL / Money Shop Scheme ends
A first payment of 4.31p in the £ was paid in May/June 2021. A second, much smaller payment of 0.65p in the £ is being paid on 14 or 18 January 2022. If you do not receive this second payment, see below for what to do. Background to the Scheme This "Scheme of Arrangement" covers borrowers from the ICL brand names, Money Shop, Payday UK and Payday Express, who were given … [Read more...]
Amigo proposes a second Scheme – but is it fairer?
UPDATE - in May 2022, the court approved the new Amigo Scheme. See Amigo's Scheme for details On 13 December 2021, Amigo proposed its new Scheme of Arrangement. The Practice Statement Letter (PSL) is a 21-page overview of the new Scheme. The numbers in the PSL have now changed Amigo says: We hope a successful new Scheme will also allow a changed Amigo, under a new management team, … [Read more...]
“Should I stop paying Amigo?” – the pros & cons
This article is in 2 parts: your situation if Amigo says you have to continue your loan repayments but you either don't want to as they should owe you money or you can't afford to. the option of Equitable Set Off that Amigo introduced on September 2021 for some people - should you opt for it? Update - some people were told they could stop paying when the 2nd Scheme was underway - this … [Read more...]
Amigo – no second Scheme before April at the earliest
On 29 November 2021, Amigo published its results for the six months ended 30 September 2021. Amigo's first Scheme of Arrangement was rejected by the Court in May. Since then, Amigo has been trying to come up with a new Scheme that is fairer to the customers given unaffordable loans. Amigo says: "the proposed contribution to the new Scheme will be significantly increased from that of the … [Read more...]
Can I get a mortgage with recent defaults?
A reader, Mr D, asked: My partner and I have a combined income of £56,000, We have a deposit of £28,000 (inheritance) and are looking to become first time buyers at a price of £230,000. We have defaulted debts that are being paid off, and previous history of payday loans from over 2 years ago from a time when our financial situation was much more difficult. The defaults are about 18 months … [Read more...]
Bank accounts for all sorts of bad credit problems, even bankruptcy
In 2016 the major UK banks all introduced new "basic bank accounts". One of the main aims was to widen bank account access to groups of people who have found it difficult or impossible to open an account: people who have gone bankrupt previously found it very hard to get a bank account; people in an IVA, DRO or debt management need to change bank accounts and have the overdraft on their … [Read more...]
ClearScore adopts the new Equifax credit scoring out of 1000
In mid November 2021, ClearScore has finally adopted the new 1000 Equifax credit scores. Equifax credit scoring changed in April 2021, when it switched to calculating scores out of 1000 - they used to be calculated out of 700. It also changed the bands used to describe your credit rating. Equifax didn't make an announcement about these changes. The Equifax Credit Report & Score was … [Read more...]
Gambling – get refunds from loans, credit cards & overdrafts
Many people with a gambling problem have been given unaffordable credit. This fueled their gambling and they got deeper into debt. Credit is affordable if you can repay it and still pay your other debts, bills and expenses. If it is unaffordable, then you can ask for a refund of interest and charges and take a complaint the lender declines to the Financial Ombudsman (FOS). But gambling … [Read more...]
What happens to your possessions in bankruptcy?
The bankruptcy application says "It is very unlikely that items you need for your daily life (eg washing machine, sofa, refrigerator) will be sold". Here are a selection of questions here that people have asked about what may happen to the things they own if in bankrupty. I may not have mentioned your exact situation, but the answers here try explain how the Official Receiver makes … [Read more...]
Is your name in a fraud database?
There are three large UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter, Cifas and Sira. If your name is on one of these connected with fraud you may find it difficult or impossible to take out credit and your bank account may be closed. But sometimes the information on the databases may be wrong and you need to get it corrected. In … [Read more...]
Bankruptcy – should you get a new job? Or work overtime?
A couple of readers have asked recently about whether it's sensible to turn down a job or overtime when you are bankrupt. Two things matter in this sort of situation. First, have you been discharged from bankruptcy? Almost everyone is discharged from bankruptcy after a year. And secondly, do you have an Income Payments Agreement (IPA) set? In an IPA, you have to make monthly payments for … [Read more...]
- « Previous Page
- 1
- …
- 5
- 6
- 7
- 8
- 9
- …
- 16
- Next Page »