I have responded to the Ministry of Justice's consultation on Default County Court Judgements (CCJs). This consultation was started in December 2017, because of: concern about the potential adverse impact of a County Court judgment on individuals who, unaware that a judgment had been made against them, found months or years later that their credit rating had been damaged. This article expands on … [Read more...]
Debt news and policy
Debt Camel articles on what's happening in the world of personal debt in Britain.
For my collections of other news items, please see Weekly News Summaries.
On 26 January 2018 the Insolvency Service published two sets of statistics: Individual Voluntary Arrangements: Outcome Status 1990 – 2016 Insolvency Statistics: October to December 2017 Predictably the news stories about this lead on the statistic that personal insolvency went up: The number of people who became insolvent jumped by 9.4% in 2017 - the second year running that … [Read more...]
If you want to talk about setting up an Individual Voluntary Arrangement (IVA) and whether it is a good debt solution for you, which firm should you talk to? You could put IVA into google... but how do you decide which of the tempting "see how much of your debt you can write off" links to click on? Or you could choose the person that cold calls/texts you telling you about a "little-known … [Read more...]
If you are thinking of starting an IVA, the Insolvency Service's IVA Outcomes - 2017 has some useful information about how many years IVAs usually last for and what is the success rate for IVAs. How long do IVAs last? IVAs are promoted as lasting five years, with an extra year being added on the end if you have a house with equity and can't remortgage. Well that is what is supposed to happen, … [Read more...]
In January 2018, Payday UK has written letters to thousands of people saying that an incorrect search was made on their credit record between August and November 2016. The Financial Conduct Authority (FCA), who regulates payday lenders, has made them write to everyone affected and offer £75 as compensation. Here is an extract from the letter one reader receive: This isn’t a scam Some … [Read more...]
This article looks at the public policy implications of the current high bankruptcy fees in England, Wales and Northern Ireland: £680 (£659 in Northern Ireland) is a big obstacle to fairness at the moment, causing people stress and sometimes leading them to make poor choices between debt solutions. If you want to go bankrupt and can't afford the fees, this is not the right article for you. … [Read more...]
The Ministry of Justice is consulting on the current processes in which someone has a judgment made against them without their knowledge. Finding a CCJ you knew nothing about on your credit record is a very unfair situation. People may only find out about a CCJ at an old address when their mortgage or other credit application is declined, or they fail a tenancy check. Here are some of the … [Read more...]
Very little has happened in 2017 that is good for the free debt advice sector: for the agencies, the advisors or - most importantly - our clients. This article is for front-line debt advisers across the country, because someone needs to say just how bad things are out there at the moment. I hope it will also be read by all the regulators, quasi-regulators, government departments and creditors … [Read more...]
15,000 people are being asked by Creditfix to agree to a variation that will increase the fees Creditfix gets from 15% to 23%. These are the Knightsbridge customers whose IVAs have recently been sold to Creditfix, If you have had one of these emails, do you have to agree? What are the pros and cons? IVA fees do matter Creditfix has said in the email about the proposed variation: The … [Read more...]
Most payday lenders aren't good at handling complaints, but Lending Stream, a mid-sized payday lender in Britain, is noticeably bad. And their habit of giving people loan after loan for prolonged periods means they are getting a lot of affordability complaints. I think their complaint handling is so bad that their regulator, the Financial Conduct Authority (FCA), should investigate it. A loan … [Read more...]