Debt Archives

Getting out of debt

Practical articles about the different debt options, which might work for you and different ways of dealing with creditors

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. But the right to ask for the CCA … [Read more...]

Complaining to the Financial Ombudsman – what happens

When you have a complaint about a loan, credit card, mortgage, pension or insurance and you can't get it settled with the company, send the complaint to the Financial Ombudsman Service (FOS). FOS describes what happens: Your complaint will be investigated by one of our case handlers, who will try to understand what happened and if the business did anything wrong. Your case handler will let you … [Read more...]

Can a debt collector or a lender call you at work?

A reader asked: I work in a Finance Department and I am worried I will be called by a debt collector about a credit card. Can I say I don't want them to call me at work? This is a common worry. Whatever your job, you don't want your manager or your colleagues to know you have money problems. It could be a lender or a debt collector, it could be an overdue bill or a debt. Creditors should … [Read more...]

What happens after an IVA fails? What can you do?

Your IVA seemed like the perfect solution when it began, but now it may be failing. Will you be back to square one and have difficult creditors to deal with? Or could you even be made bankrupt? First, there may be ways to rescue your IVA An IVA failing may not be a disaster, for some people there are better options! That's what the rest of this article looks at. But don't assume nothing … [Read more...]

2018 – Ombudsman decides it can look at payday loans over 6 years old

The Financial Ombudsman (FOS) has published in September 2018 two Decisions involving payday loans over six years old: Mr H has complained about fifty-four payday loans Lender C lent to him between March 2010 and September 2014. Mrs W’s complaint is about nine short-term loans from Lender D between November 2009 and July 2012. In both cases FOS has decided that its rules do allow it to … [Read more...]

Identity theft – what you need to do

This article grew out of a reader's question. Mrs J, asked: Since February my husband has started to receive letters from WageDay Advance, Satsuma and QuickQuid saying that he has loans with them that need repaying. He doesn’t have any loans. We have sent Prove It letters to all three. We have now had letters saying that WageDay Advance and QuickQuid have passed the account to debt … [Read more...]

Mortgage repossession and your credit record

A reader, Mr D, asked: I had a mortgage shortfall from 2006 after my house was repossessed by Natwest. As a mortgage shortfall stays on file for 12 years, I decided to make a Full and Final settlement offer in January this year which they accepted and which has now been paid. Now with both Equifax and Experian, the account has disappeared, it doesn't appear in my open or closed accounts. … [Read more...]

Getting a clean start after gambling debts

A reader, let's call him Mr C, asked: I have been in bad mental health and have in periods of illness suffered big losses due to online gambling. I used to earn £32,000, I now only work part-time, getting c £700 a month, and have moved back to my parents. I have debts of £27,000 with £1,000 a month repayments. Some debts are very new eg a £8,000 loan three months ago. I am very unlikely to … [Read more...]

SMI – what happens if you haven’t agreed to take the loan?

Support for Mortgage Interest (SMI) used to be paid as a benefit to people who weren't working - this ended on 5 April 2018. From 6 April someone newly applying can only get help with their mortgage costs through a secured loan instead. This is sometimes referred to as Loan for Mortgage Interest (LMI), but the old name SMI is also used. If you have been getting SMI before April, there are now … [Read more...]

DWP chaos? Only 10,000 have agreed to new SMI loan

The Office for Budget Responsibility (OBR)'s Economic and Fiscal Outlook paper, published today with the Chancellor's Spring Statement, has this statement: DWP has told us that all current claimants have been contacted about the intention to convert their [Support for Mortgage Interest] award into a loan and of those that have responded, over half have indicated they are not interested while less … [Read more...]