The Government’s implementation of its debt management strategy, designed to help people to get out of debt, has been branded a “complete failure” by MPs of the Public Accounts Committee. Committee MPs said that 51 various projects had been uncoordinated with no leader in charge since 2004, and reported that 11% of adults were struggling [...]
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Debt problems loom as interest rates on small loans doubles
People looking to take out a loan for a smaller amount of money have seen the interest charged more than double in the last ten years, prompting fears that potential debt management problems will be accelerated. According to research released today, the average interest rate for a £3,000 loan is 14.92%, despite a record low [...]
60% interest rates on credit card debts fuels debt problems
In a desperate attempt to secure credit, around a million customers have turned to sub-prime lenders charging 60% interest on outstanding credit card debts. The reported 2,700 people applying daily for sub-prime Provident’s Vanquish card will typically have a poor credit history, and may have experienced debt problems in the past. Average interest rates on [...]
Cost of bankruptcy to increase by £90
People who are struggling with their debt problems look set to find it more difficult to relieve their debt management, as the cost of bankruptcy is set to rise by £90. From April 6 the Government-backed Insolvency Service is raising its bankruptcy petition fees, from £360 to £450. There will also be an extra court [...]
Ministry of Justice investigates “misleading” claims management company
Another claims management company, Cartel Client Review, are being investigated by the Ministry of Justice, following reports that their advertised debt management claims are misleading. The company’s alleged misleading claims were highlighted following an investigation by the BBC’s Money Box programme, where it was reported that customers who had paid hundreds or thousands of pounds [...]
Credit card debts up as consumer demand rises
For the first time since June last year, the demand for credit cards, overdrafts and personal loans was more than the amount being repaid by UK consumers. Bank of England figures showed that in December, the demand for consumer credit was up by £52m, driven predominantly by borrowing on credit cards. Whilst the interest rates [...]
Thousands of homeowners to avoid repossession by legal loophole closure
The government has announced plans to prevent lenders from repossessing properties without first going to court, by closing a legal loophole. Plans to be announced tomorrow mean that mortgage lenders will be barred from seizing a borrower’s property without first seeking a court order. The proposals come after a campaign by charities which started following [...]
Retail Boost to End the Year
Shoppers are ignoring the recession and had a £5billion Christmas spending spree this weekend as nearly half the population hunt for last-Âminute gifts. The nation’s high-street tills rang up sales of more than £3 billion yesterday up by £1 billion in comparison with the same day last ÂChristmas. Retail experts are predicting another £2 billion [...]
Bank Charges Challenge Dropped
Following the loss of a test case last month at the Supreme Court the Office of Fair Trading has announced this morning that it will abandon its legal action against banks over unauthorised overdraft charges. The charges seen by many people as totally unfair will now continue and claims lodged are set to be dismissed [...]
Debt Management worries ease as consumer borrowing falls
Debt Management providers have welcomed the news that consumer borrowing has recorded its biggest fall since Bank of England records began some 16 years ago. There has been a large increase in the number of people struggling with debt problems, and having to seek financial advice to improve their situation. Consumers have been turning to [...]
