Mortgage pay-offs hit £7 BILLION high

Record amounts of money are being spent to repay mortgages and pay off other debts secured on their homes, according to the Bank of England.

Households managed to pay off £7 billion net of mortgage and other secured debt in the last three months of 2010, which is the highest net repayment ever seen in this country since records began in 1970. This will deal a crushing blow to the country’s economy, with new lending to first-time buyers on a massive low, little can be done to balance the depressing impact on the economy.The Bank's latest statistics on housing equity withdrawal show a steady ascent on the £6.6 billion paid off between July and September.The figures also include money paid as deposits by homebuyers.Lenders demanding higher deposits and rationing home loans would also increase the financial stake that homeowners have in their properties.During the boom, people used extra mortgage borrowing to cover other spending.Kevin Still, Director of Atlantic Financial Management, said: “For those UK consumers with surplus cash at month end, clearing debts appears to be sensible with the average level of unsecured debt for people using credit continuing to fall through the recession. This has dropped from £21,640 in April 2009 to £16,207 in April 2011, according to Credit Action. From July 1998 to March 2008 homeowners borrowed an extra £328 billion against the rising value of their homes.Kevin continued: “What is of concern is those homeowners reliant on low interest rates and who are facing an increasing squeeze on their disposable income with the budget compounding this to create more debt problems. Leading debt analyst TDX has recently forecast a rise in informal debt solutions like Debt Management Plans (DMPs) in the second half of 2011.” As a percentage of incomes, the net pay-off of debt in the three months of 2010 was also at a near record 2.7 per cent, a shade behind the 2.8 per cent of income paid off in the last months of 2008, in the midst of the credit crunch.The Bank commented that "weakness in housing equity withdrawal continues to be driven by the relative weakness of lending compared with resilience in housing investment".According to the Independent, the British Chambers of Commerce (BCC) says that the "overall picture is worrying", with the soaring cost of raw materials squeezing profit margins and confidence. The BCC says that the conclusion of its poll of 6,000 firms shows an outlook "mediocre and disappointing, particularly for manufacturing". It predicts that the economic upturn in the first quarter of this year will just about compensate for the fall in output at the end of last year. Bad weather and the VAT increase have been blamed for the lack of business cash flow.David Frost, the director-general of the BCC, said: "While the Government has listened to calls to help the private sector create growth, there is more to be done in giving businesses greater confidence, and encouraging them to export, invest and create more jobs. As the public sector cuts start to bite, the Government must get the detail right on the measures announced in the Budget to generate economic growth."
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: Billion,mortgage,payoffs

£52M pension fraud suspect charged

A man connected to one of the country’s biggest pension fund fraud investigations has been charged with defrauding nine pension funds of £52 million.

Tony Morris, 48, who has been living in a mansion in Palm Beach, Australia, was implicated in an investigation into the whereabouts of the huge cash amount from a pension trustee firm.Morris appeared before Westminster Magistrates Court last week to be charged with conspiracy to defraud, theft and aiding and abetting fraud.Nottingham-based GP Noble Trustees, a company which managed the assets of 29 pension schemes, had been bought in 2006 by an advisory firm – The Money Portal –  set up by Morris years earlier.It was suspended from trading in August 2008 after the pensions regulator and the SFO intervened after issues about 'unauthorised' investment of the funds came to light.In January last year, a High Court judge ruled there was evidence to suggest that money from the firm had been paid to Morris, despite never being charged. He claims not to have even been questioned by police. Speaking to the Daily Mail, Morris claimed that a crucial report commissioned by Independent Trustee Services, the firm appointed to replace GP Noble, and compiled by accountancy giant Pricewaterhouse-Coopers (PwC) in 2008, proved his innocence but had been suppressed.Morris said: “In that report it verifies that all bar a few thousand pounds was accounted for. That report said this is a victimless crime in respect of pensioners losing any entitlement to money. Why is the PwC report being withheld from people who can make a more informed decision about this? There is no pensions black hole. It is lunacy.“The investments were never missing, the money that was transferred to the court was transferred from lawyers, not from individuals, and it has all been accounted for.”He said all investments made by the firm had been in “appropriate, legal, recognised and authorised structures” and “made under the scrutiny and protocol” of a regulated international law firm.PwC confirmed that it had done work for ITS, but would not disclose details, claiming client confidentiality.Morris said: “It should be in the public domain because it is part of the disclosure documents of ITS. If they haven't submitted it as part of their evidence, they are withholding material information.”In an unrelated case, Morris quit his position as head of independent financial adviser The Money Portal in 2005 after being disqualified as a director for ten years.He also dismissed speculation that he left Britain as a result of alleged events within GP Noble, saying he had moved to Australia for personal reasons.He said: “All of my plans and my move were well in advance of this matter. It was not that I emigrated to Australia because there is a black hole in a pension fund - there is no black hole. I met my Australian wife and started my family well before this sorry saga ever began.”This case was originally referred to the SFO in July 2008 by The Pensions Regulator (TPR), who appointed Independent Trustee Services Limited to manage the nine affected pension schemes in place of GP Noble. TPR suspended GP Noble and two of its directors/officers, Graham Pitcher and Gary Cordell, from acting as trustees.  All three have since been prohibited from acting as trustees and GP Noble has gone into liquidation.The prosecution revolves around the alleged theft of £52 million in two tranches: £30 million was taken in August 2007 and £22 million in April 2008 from nine pension schemes managed by G.P. Noble Trustees Limited and BDC Trustees Limited.The alleged actions exposed the pensions of approximately 2,200 people to unacceptable risk.The news follows the charging of four other people in relation to this investigation.Peter Malmstrom, 43, of London, an associate of Tony Morris, was charged in November 2010 with money laundering and proceeds of crime offences.Already charged, in March 2010, and subject to a separate trial are Graham Pitcher, 49, and Gary Cordell, 42, both former trustees at GP Noble.Independent financial advisor Quentin Russell, 53, was charged in November 2009 with Fraud Act 2006  and forgery offences.Morris been remanded in custody to appear before Southwark Crown Court on April 8.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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OFT slam the brakes on used car giant

The OFT has taken action against a used car buying company over concerns that its online valuations were misleading.

The regulator found that nearly 96 per cent of customers who sold their car to webuyanycar.com received hundreds of pounds less for their vehicle than their original online quote.The site’s users thought they would be paid the online valuation if the company's onsite inspection of the car’s condition matched the details entered online by the prospective seller. But some customers found that other factors, such as 'market conditions', reduced the final price after their vehicles were inspected.Cavendish Elithorn, Senior Director of the OFT's Consumer Group, said: “Selling personal possessions through the internet is increasingly popular, especially in these tough economic times. But it's important that the headline figure isn't chipped away at by the buyer, because it makes it very difficult for consumers to shop around and find the best deal.”The OFT also found that vehicle inspectors were given buying targets and were sometimes told to reduce the valuation offered by up to 25 per cent upon reappraisal.Mr Elithorn said: “This action makes clear that online businesses offering to purchase cars or other goods must provide clear upfront information on pricing and about how their service operates and company staff should not be incentivised to cut the valuation that has attracted the customer to the business.Furthermore, sellers were given the impression that the online quote was valid for seven days, so were encouraged to make an appointment quickly. “The growth of new business models on the internet can bring major benefits for consumers, businesses and the UK economy. But for this to work, people need to be able to trust the deals they are offered,” he continued.The OFT also expressed concern that prospective customers would accept reduced valuations, even if they were unhappy with it, once at the company’s premises. The reasons for this included expenses already incurred and personal circumstances meaning a quick sale was imperative.The used car site has been ordered to make clear to the consumer that the website valuation is not set in stone and to stop setting targets for vehicle inspectors that would make reduced car valuations be beneficial to the valuer. 
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: brakes,giant

Debt panic causing sleepless nights

Wednesday 6th April 2011 A debt advisor has revealed the startling amount of users that logged onto its site during what has been dubbed a night of debt panic.The Consumer Credit Counselling Service (CCCS) reports that 50,000 people logged on to their website between midnight and 7am for help last year.The debt charity said it suspects that many victims desperately try to bury their heads in the sand about their debt problem, during the day and then become riddled with worry in the early hours of the morning.It is thought another factor contributing to the high influx of night time hits is down to people hiding their debts from their spouse or partner.As a result, people in debt may be unable to seek debt help during the day while they are at work or at home.According to the Daily Mail, around 15,000 sought help between midnight and 1am of the 49,826 total. Around 3,500 used the website’s free online counselling service between 4am and 5am.A CCCS spokesman said: “Dealing with debt is incredibly stressful so it is not surprising that many people, unable to sleep, seek debt counselling in the middle of the night.The CCCS service asks users to enter their income and expenditure and then recommends a course of action.He said: “Debt problems are very emotive and often leave people feeling ashamed that they cannot keep up with their credit commitments.“It is not unusual for people to keep their debt problem hidden from their loved ones so middle-of-the-night debt counselling is a way to seek help without their partner and family knowing.”A recent Post Office report found that one in three people who are in debt hide the true extent of their financial problems from their family.This comes as the number of people who are declared insolvent in England and Wales has hit an all-time high of 135,089, which is a number that is likely to keep on rising as the soaring cost of living cripples people’s finances, particularly if mortgage interest rates are increased.A typical CCCS client has a surplus of just £43 a month after paying for all their essential bills.On average, they have debts of £24,364, which is only just below the total amount earned by a typical worker in a whole year.It is not the only example of people choosing an unusual time to look after their finances.HMRC said that 845 people filed their tax return on Christmas Day last year, and 96 people did it between 11pm and midnight on New Year’s Eve.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: causing,nights,panic,sleepless

England football legend faces financial ruin

A former England football legend has submitted a debt payment schedule in the hope of avoiding financial ruin.

Paul Gascoigne owes the taxman £32,000 and has been given another chance to fend off his impending bankruptcy.If his proposed timetable to manage the debt is accepted in court, it means the 43-year-old Geordie will be able to avoid bankruptcy proceedings.The case against Gascoigne – who is known to football fans worldwide as ‘Gazza’ – was adjourned for a further two weeks at a brief hearing at the High Court in London last week.The proceedings followed a hearing in February when Deputy Registrar Clive Jones agreed to adjourn a petition for bankruptcy for six weeks.But last Wednesday Mr Registrar Jaques heard that a proposal has now been put forward by Gascoigne which would enable him to pay off the full debt to HMRC within a structured timescale.If his proposal is accepted it would ‘stay’ bankruptcy proceedings against him, meaning an automatic injunction would halt the actions of his creditors.Gascoigne was once one of football's highest-paid stars and at the peak of his career he was reported to be worth £14 million. When he was transferred from Newcastle United to Tottenham Hotspur in 1988 he became a millionaire. He later secured a £1.25 million deal with Italian club Lazio.As a key player in the England squad, he won sponsorship deals worth more than £5 million with sports clothing manufacturers and Walkers crisps.Gazza then went on to play for Rangers, Everton and Middlesbrough before having short spells at Burnley, Chinese side Gansu Tianma and Boston United.Since quitting football he has battled alcoholism and had a bizarre involvement with the armed stand-off between the police and killer Raoul Moat.He arrived at the scene in Northumberland and offered to help with negotiations, bringing the murder suspect a "can of lager, some chicken, a mobile phone and something to keep warm”.In December, Gascoigne was given a suspended prison sentence and an alcohol treatment order after admitting drinking and driving.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: England,faces,financial,football,legend

Postmaster ‘killer’ was in debt hell

Robin Garbutt, the sub-postmaster who allegedly murdered his wife, was facing escalating debt problems at the time of her death.

A jury heard last week that despite earning less than £20,000 in 2009/10, Garbutt, 45, and his wife Diana went on a string of luxury breaks, according to the Northern Echo.Teesside Crown Court heard last Thursday that in July 2009 the couple spent £1,206 on a four-night stay at The Devonshire Arms, Bolton Abbey, North Yorkshire.They went back the following month for a three-night break at a cost of £844.On the ninth day of Garbutt’s trial, DC Karen Barugh, from Richmond CID, told the court that the couple went on five other breaks together in 2009, despite spiralling debts.The couple were due to go on a £3,000 three-week trip to the US the week after Diana was murdered.Teresa Bentley, North Yorkshire Police financial investigator, told the court that Garbutt had six credit cards, all with large and increasing balances, as well as a HSBC account that was constantly overdrawn.The account for the store at The Village Shop and Post Office, in Melsonby, was also always overdrawn, while a third joint account had a balance of about £6,000.Mrs Bentley said: “On all the credit cards, they weren’t in arrears, regular payments were being made. However, it was only the minimum monthly payment.”The jury was told that the shop had a turnover of about £207,000 in 2009-10, yet made a profit of only £4,124.Despite Diana’s modest sub-postmistress salary of £14,500, cash payments totalling more than £17,000 were made to the couple’s accounts in the four months before the murder, Mrs Bentley said.The court heard that the couple bought the post office and shop for £153,000 in May 2003, but the business was put back on the market in 2006 for £450,000.Mrs Bentley agreed that the couple’s assets outstripped their debts while being cross-examined by Jamie Hill, defending.Garbutt denies beating his wife to death on March 23 last year and then blaming the attack on an armed robber.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: killer,Postmaster

DCM Money Solutions and Apex clients update

by Nazma Noor on April 6th, 2011

Following on from our recent announcement that ClearDebt are working with the administrators of Apex and DCM Money Solutions, we can now confirm that case data will be available to Apex and DCM Money Solutions clients next week.

The team here have been working hard to filter through the data we received from the administrators, HJS Recovery, and register it onto our internal systems so that we can provide a clear picture to clients on their debt management plans with Apex and DCM Money. From next week clients will be able to request their data files from us.

In the meantime, any concerned Apex and DCM Money Solutions clients can contact us on our dedicated number, 0800 612 3318 or email apexenquiries@cleardebt.co.uk

ClearDebt want to ensure that Apex and DCM clients are made aware of all their options and, should a debt management plan be the most appropriate solution, ClearDebt will waive the normal fees charged on such arrangements to ensure debts are cleared in the shortest possible time. This plan will be entirely free of charge.

Mike Morgan, one of the team working with Apex and DCM Money clients comments:

I’m one of the team that’s been answering the phone to the hundreds of worried ex-Apex DCM clients who have rung us to discuss their situation. Sadly, it’s not all been good news.

It seems that Apex assessed clients using a set of criteria that were definitely NOT industry standard, or, at the very least, that they hadn’t reassessed their clients for a very long time.

A significant minority of clients were paying a lot less than we’d need to require in order to put forward a DMP that complied with CCCS spending guidelines. Others were making payments that, realistically, they couldn’t afford and we’ve had to recommend bankruptcy, debt relief orders or even the token payment scheme through the CCCS to them.

But, I’m proud to say that there are many for whom our free plan is the most appropriate advice and also a number who should have been advised to opt for an IVA and who are now likely to spend less on their debts and see them resolved in a much shorter time. The hard work is by no means over, in fact it is only just beginning, but we are now starting to see some positive movement forward for the former clients of Apex DCM.

There is currently a forum thread on the consumer website MoneySavingExpert which discusses the Apex and DCM Money administration. You can view the forum post here: DCM Nottingham / DCM Money Solutions in administration?.

Another discussion about Apex and DCM Money Solutions has also been posted on the Legal Beagles online forum. You can view the forum post here: DCM Money Solutions – In administration.

Look out for posts by ClearDebt’s Jacqueline Cohen and Andrew Smith (posting as “rednelly”).

If you have any further enquiries, please Contact ClearDebt, alternatively you may comment below.

By Nazma Noor and is filed under Debt Management.
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Posted in: clients,money,Solutions,update

Telecommunications Interruption

Earlier today, the offices of ClearDebt Group suffered a service interruption to the power supply. This is having a disruptive affect on telephone and email communications between all ClearDebt staff, customers, and partners.

We regret to advise that you may continue to experience difficulties contacting us by phone as engineers work to restore full service. We apologise for the inconvenience this may have caused.

You may continue to contact your ClearDebt representative via email although you may not receive an immediate response. Our services continue to be available online including the ClearDebt Community where you may ask debt questions and the Debt Analyser. Staff are also available via Twitter for any queries you may have.

Once again, we apologise for any inconvenience this may cause and we assure you we are doing everything possible to remedy the situation.

Thank you for your patience.

By Marketing and is filed under Inside ClearDebt.
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Posted in: Interruption,Telecommunications

Full & Final IVA

If for whatever reason you have received a sum of money, no matter how small or large, you may be able to use that to pay your creditors in a Full & Final IVA.

Today I am going to explain what a Full & Final IVA is and discuss the criteria of it.

In brief, with an IVA you make an offer to repay your creditors a percentage of the debt that you owe. For example if you owe ?50,000 you would need approximately ?10,500 to offer a dividend that creditors may accept.

With a Full & Final IVA, everything is done exactly the same; instead of making an offer for 60 monthly payments you will offer one payment, however your creditors may put forward modifications depending on your surplus.

You would have to submit proof of the funds that you are using for your IVA and you would need to do this on top of the other documentation that is also needed for your IVA proposals.

If you have received a windfall such as a redundancy pay out then you may be able to keep a certain amount of the funds before putting the rest of them in an offer to your creditors. If you have been made redundant and have received a pay out and are still seeking new employment then it may be a possibility for you to keep some of the money that you receive in order to pay your bills and other expenses. In these circumstances, you need to make sure that you are offering a realistic amount to your creditors otherwise they could ask for the full amount.

The equity clause that is in standard IVAs does not apply to a Full & Final IVA. You will make one payment only and then your IVA will be complete. However if you have substantial equity in your property then your creditors may decide to ask for this to be included.

Although you only make one payment, IVA will stay on your credit file for six years and as with all IVA?s you will still need to be regarded as insolvent.

If you are struggling with debts then please call Payplan on 0800 2802816.

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Posted in: Final

2011 Benefit Changes

Written by Lizzy on Thursday 7 April 2011

Here are the key changes to the benefits that came in action on 6th April.

If you are struggling with debts then please call Payplan on 0800 2802816.

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Posted in: Benefit,Changes

Mortgages & Debt

Being in debt is scary enough, but when you have a property there can be added pressure on you. Today I want to talk about mortgages, and debt and how they come together.

Your mortgage will most probably be the biggest debt you will ever have. You will have your repayments set out for you at the beginning and you will know what interest you will pay towards this. Depending on the type of mortgage, your interest will either be fixed at a set rate for a certain length of time or will be variable but linked more or less to Bank base rates.

As well as being the biggest debt, it will often also involve the largest single, regular outgoing in your household budget and should always be paid as there are serious consequences.

In order to manage your debt you need to start by prioritising what needs to be paid. If you have a mortgage then your monthly payment will always the first thing that you need to pay. After that you need to pay any secured loans or hire purchase agreements. Any other debts will then come after.

I know that this might seem like I am stating the obvious but from my past experience when it comes to paying your debts it is usually ?whoever shouts the loudest? gets your money. For example, if you have a credit card or a loan and you miss a payment they will always contact you straight away and demand money from you. They will also add interest and charges on straight away for missing a payment of sending a late payment. Whereas, if you miss a mortgage payment it can take them a couple of months to process the missed payment and to take the necessary action.

By doing this you may avoid the initial hassle of not missing a credit card payment but by missing a mortgage payment you face more serious consequences.? You may think that you can make up the missed mortgage payment, but in reality it is often harder to catch up once you are in arrears with payments than you might at first think, this is because you will not only have your usual monthly expenditure to pay, including your usual mortgage payments, you will also have your creditor payments that you need to keep making as well as extra to your mortgage to cover the arrears

If you are in arrears with your mortgage then the best thing for you to do is contact your mortgage company straight away and reach an early, workable agreement with your lender. If you have fallen into arrears because you are struggling with your debts then seek free impartial advice to help with setting up a plan with your creditors.
If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

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Posted in: Mortgages

FSA and HM Treasury publish joint consultation paper on covered bond regulation

FSA/PN/035/2011
06 April 2011 The Financial Services Authority (FSA) and HM Treasury (HMT) have today published a joint review of the UK’s covered bond regulation.

The review proposes a number of measures to build on the UK’s existing strong covered bond regime. These will make sure UK covered bonds are readily comparable to those from other countries and can compete on level playing field. The review highlights the quality of the UK regime, and will increase the appeal of UK covered bonds to investors.

The review also provides an update on the UK's engagement with its international partners on other areas of policy which relate to covered bonds. A key issue of current discussion is the scope of proposed ‘bail-in’ powers, which would allow the authorities to impose losses on the creditors of a failing financial institution. The UK believes that in the exercise of any bail-in powers, secured creditors’ rights to collateral should not be over-ridden, and that the claims of covered bond holders in relation to the supporting asset pool should not be affected.

The review proposes the following changes:

Introducing consistent standards of investor reporting: this will increase transparency for investors and highlight the quality of underlying assets, while the use of common standards will make it easier for investors to compare different programmes.Requiring issuers to maintain a fixed minimum level of overcollateralisation: a fixed floor will give clarity to investors and aid comparison between the UK’s regulated covered bond programmes and other regimes. Designating a regulated covered bond programme as backed by only a single asset type in the legislation: all UK issuers currently only use residential mortgages in their programmes, but the range of eligible assets in the regulations is much broader. This option will allow issuers who use only a single asset type to give greater clarity to their investors. Excluding securitisations as eligible assets for regulated covered bond asset pools: no issuers currently include securitisations as collateral in their regulated covered bond programmes. This proposal will emphasise the important distinctions between covered bonds and securitisations, and give greater clarity to investors. Creating a formal role of ‘asset pool monitor’ in the legislation: this codifies the existing UK practice of independent, external scrutiny of an issuer’s regulated covered bond programme and will provide added reassurance about the high standards of UK regulated covered bonds. Changes to regulatory reporting: updating and consolidating the regulatory reporting that the FSA requires when issuers apply to register with the FSA and on an ongoing basis. This information is used to assess issuers’ applications and as part of the regular stress-testing the FSA conducts on regulated covered bond programmes.

Responses to the HMT and FSA consultation paper must be received by Friday, 1 July 2011.

The Consultation Paper can be found on HMT’s website. Replies should be sent to HMT, via coveredbondreview@hmtreasury.gsi.gov.uk, and will be shared with the FSA.The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system.

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Posted in: consultation,covered,joint,paper,publish,regulation,Treasury

Consumer complaints (emerging risks and mass claims): Feedback on DP10/1

E-mail:

DP10/1 to contact the authors

28 March 2011

This Feedback Statement reports on the main issues arising from Discussion Paper 10/1, Consumer complaints (emerging risks and mass claims).

Newsletter [PDF]

DP10/1: (March 2010)

Consumer complaints (emerging risks and mass claims)

FSA/OFT/FOS Coordination Committee

Memorandum of Understanding between the Claims Management Regulator and the Financial Services Authority [PDF]

FSA Handbook

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Posted in: Claims,complaints,Consumer,DP101,emerging,Feedback,risks

Quarterly consultation paper No.28

E-mail:
CP11/07 to contact the authors

Telephone:
0845 608 2372 to order a printed copy

6 April 2011

The FSA's Consultation paper CP11/07 is entitled 'Quarterly consultation (No. 28)'. It was published in April 2011. Comments on Chapters 2, 4 and 9 of this CP should reach us by 6 May 2011, and comments on Chapter 3 should reach us by 13 May 2011. Comments on all other chapters should reach us by 6 June 2011.

Newsletter [ PDF ]

Online response form
Response Paper will be available at the end of the consultation process

FSA Handbook

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Posted in: consultation,paper,Quarterly

Auditor's Client Assets Report

25 March 2011

This Policy Statement reports on the main issues arising from Consultation Paper 10/20 Improving the auditor’s report on client assets and publishes final rules.

Newsletter [ PDF ]

Press release

CP10/20: (Sept 2010)
Improving the auditor’s report on client assets

FSA Handbook

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Posted in: Assets,Auditors,Client,report

Use of non-EEA rules in calculating group capital requirements

E-mail:
CP11/06 to contact the authors

Telephone:
0845 608 2372 to order a printed copy

31 March 2011

The FSA's Consultation paper CP11/06 is entitled 'Use of non-EEA rules in calculating group capital requirements'. It was published in March 2011. Comments should reach us by 30 June 2011.

Newsletter [ PDF ]

Online response form
Response Paper will be available at the end of the consultation process

FSA Handbook

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Posted in: calculating,capital,Group,nonEEA,requirements,rules

UK Debt Management companies

Your debt management company will create a glowing background pro you and blurt made known approximately very skilled advantages of adopting their debt management preparation. However, here are various disadvantages as well, which they don’t expose.

Similar to such aspects, they don’t expose the macro picture. Hence, the UK debt counsel collected in rank from debt management companies in UK, which can be quite surprising to an ordinary man.

At the aim of July 2009, the whole private debt of UK accumulated to be £1,457bn.

Since continue link of years, 1 person in each 4 minutes declares liquidation. However, it is probable with the intention of this digit will dive down with comprehensive finances catching momentum.

The mean debt for every household in UK sums up to £9,226. This amount doesn’t exclude mortgages, as debt management companies in UK don’t cover household loans.

An mean UK resident pays around £2,637 each time as appeal on amount outstanding.

Inside the cycle 01st January 2009 to 31st July 2009, around 3,600 confidence applications were twisted down all time. And this digit is increasingly increasing.

Credit license has twisted made known to be the top culprit of this circumstances. The mean appeal rate charged by confidence license providers is 18%. The corrupt rate is 0.5%. With the intention of earnings the current tariff are 17.5% higher than the corrupt rate.

Most of the clients of debt management companies in UK are fed up with their confidence license amount outstanding. The study shows with the intention of the whole confidence license debt of UK in July 2009 was £54 billion. However, the whole confidence limit of confidence cards in UK sums up to £158 billion. This earnings each person in UK has a confidence limit of around £5,129.   

According to debt management companies in UK, lone in each 7 public in UK buried under serious debt doesn’t have a discussion to somebody in this area it. And around 25% of public under amount outstanding take approximately a time to release their condition.
   
The loss incurred by UK linking July 2007 and May 2009 was around £36,000 for every grown-up. This is quite surprising.

Though this in rank revealed by debt management companies in UK could not help you to repay your amount outstanding, it will beyond doubt help you to understand with the intention of generally of the private predicament circumstances is a upshot of macro economics.

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Posted in: Consolidation,debts

Budget brings little relief for middle England

The March Budget has bought some much needed relief for low income families but Atlantic Financial Management is warning that many middle income home owners are still facing stagnant wage inflation, increased living costs and the threat of mortgage rate rises in May.   

Director Kevin Still said: “From April, 1.1 million people on lower incomes will no longer need to pay tax. This and the decision not to lower the 40 per cent tax threshold are welcome moves. There is also help for low income families through more child tax credits as well as a pay lift for public sector workers. But while council tax has been frozen, we must not forget that the cost of living is rising at twice the pace of wages so any increase would have really hurt.  “There is also now increasing speculation of a mortgage rate increase in May bringing further woe for squeezed homeowner budgets. Our experience with our homeowner clients with mortgages is that they have higher levels of unsecured debts with around £35,000 being the average, where high interest rates can be very punitive.   Atlantic is urging families to give themselves a financial health check to ensure they can cope with any further increases in their monthly outgoings.“The Chancellor’s decision to axe the planned rise in fuel duty must also be welcomed but 1p is not going to make a huge difference to struggling families and small businesses.  There is still some way to go before we can really say that fuel is an affordable commodity.“What is striking about the Budget is that many middle income families already struggling with the day to day cost of living will see little relief. It is this group that is perhaps most at risk of debt problems simply because they are more likely to have higher secured credit.  Mortgages, secured loans, rent, council tax and utility bills must all be top of the list when choices have to be made over who to pay first.“This is where a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) from a licensed debt solutions company such as Atlantic can help.  We will work out which payments are prioritised and which can be negotiated.  Atlantic makes allowances for the priority payments and any arrears on these in the client’s monthly budget and statement of affairs.”Atlantic also negotiates a debt repayment plan for unsecured debts and has an excellent record of getting interest and charges frozen on these accounts, typically credit cards, store cards, personal loans and catalogue debts.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: brings,budget,England,little,middle,Relief

Jailed gangsters’ car scam grinds to a halt

A conman and his team swindled personal injury lawyers out of £150,000 by inventing car crashes and referring the 'injured clients' to them, the Daily Mail reports.

Irfan Manzoor, 35, who saw himself as a major player within the world of accident claims, was a fraudster who duped solicitors paying him for passing fake cases onto them.The Manchester-based scheme preyed on solicitors in order to pocket the referral fees at £600 each time. Manzoor concocted stories of car crashes and falls on pavements but the lawyers only realised when they tried to contact the 'injured clients' to prepare expensive litigation for them. The telephone numbers given to them would be simply diverted to his accomplices, who would then pretend they were either the claimants or the parties at fault. Once lawyers had handed over referral fees all contact with the firm would suddenly be severed. One member of Manzoor’s team used to be a General Medical Council investigations officer, who used his insider knowledge in order to create plausible doctors’ notes. had inside knowledge of the personal injury sector and was able to create doctors notes. Manzoor’s company, North West Claims Ltd, was based in a luxury £1,300 a month rented Manchester apartment in Beetham Tower, one of the tallest and most prestigious skyscrapers in Britain. At least 19 law firms fell victim to the scam, although the figure is probably in excess of that, as investigators believe other firms were conned but were too embarrassed to come forward. It was when Border Agency officials raided the company on April 2009 that the scam was exposed. As a result of the raid, 187 claim forms from solicitors were found along with 33 mobile phones and charts including documents on how to create false national insurance numbers. Over a five month period, £135,000 had been paid in and £131,000 withdrawn under the name of Lia Ali, one of Manzoor's aliases. A second account had £18,000 paid into it. Upon sentencing Manzoor, Judge Elgan Edwards QC said; “You played a significant role in this sophisticated, clever and also successful fraud. It was also dishonest and was dishonest from the start. You all knew what you were doing.”Detective Constable Martyn Cunningham, from Greater Manchester Police’s Economic Crime Unit, told the Daily Mail: “The full extent of the damage caused by the bogus enterprise is not known, as not all of the law firms affected have come forward.“Furthermore, we do not know how much time was wasted by solicitors working on these completely fictitious cases. Even though its sole purpose was to fraudulently make money, this company operated like a legitimate business. “The defendants each had their own roles and responsibilities. They each had extensive knowledge of the personal claims industry, which helped them completely exploit it.“ But this was a fraud that was large in scale, meticulously planned, deliberate in its intention, directly targeted at its victims and tenaciously executed to obtain maximum revenue. This was, at the heart of it, a case of organised crime.“ But it also has to be said that the vast majority of claims management companies are legitimate and genuine, and have a well-earned reputation with the solicitors and claimants they work with.” Last Friday Manzoor began a 30 month jail term after he pleaded guilty to conspiracy to defraud. He was also banned from being a company director for five years. The other members of the gang were also jailed after being convicted of conspiracy to defraud: Javaid Shah, 30, from Manchester, and jailed for 12 months; Amjad Hussain, 34, from Northern Moor, Manchester was given 12 months in jail; Safdar Ali, 33, from Belle Vue, Manchester was jailed for four years; Vahida Iqbal, 32, from Oldham was given two years; amd Kadija Ahmed, 21, from Heald Green was jailed for 15 months.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: gangsters,grinds,jailed

Men ‘in a tackle’ when it comes to debt

Men are far less likely to confront debt troubles compared to women, a study has revealed.

Debt advice charity Money Advice Trust (MAT) has revealed a range of psychological and sociological factors are responsible for making men less likely to seek debt advice than women.The research, which was undertaken by Dr Jackie Goode and Dr Amanda Waring from the Centre for Research in Social Policy, uncovered reasons why men can be seen to be less likely to seek debt advice than womenFactors included the divisions of ‘financial labour’ between men and women, whereby this was seen as the woman’s role, being over optimistic, as well as a lack of awareness, understanding, and inaccurate perceptions of what advice services offer.Chief Executive Joanna Elson OBE said: “Our anecdotal evidence was that men might require a little more of a push to seek help in dealing with a debt problem and this research helps us to understand what might be behind this. We want to work to break down any barriers that exist to prevent men from obtaining advice. It is clear that many psychological and sociological factors are at play when men seek out advice and not-for-profit money advisers need to recognise this in how we promote and deliver advice.   The report also says that men also seem to be low on self-confidence as the study found they often think they lack social skills perceived to be necessary to access debt management services.Joana continued: “At MAT we have already made steps to encourage men to seek advice. In November last year we launched My Money Steps, an online debt advice service. Our research suggested online tools might be particularly useful for men who are more likely to feel the need to ‘help themselves’ and to re-gain a measure of control of their finances.“We are encouraged that those who had received advice from a not-for-profit organisation reported on their experiences positively; however we are concerned that some men were not fully aware of the differences between charitable advice organisations and commercial debt management companies. Our research suggests that this confusion can prohibit some men from seeking advice, and it certainly doesn’t help that commercial organisations continually seek to confuse the matter by advertising as if they were a not-for-profit entity.”Men’s need to take control of finances and be able to ‘do it themselves’ in relation to managing debt problems is also said to be a contributing factor.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: comes,tackle

Dentist fakes own death for £1.85M

Wednesday 30th March 2011 A dentist has been jailed for five years for making £1.85 million of life insurance claims after faking his own death.Emmanouil Parisis, 46, formerly of Barnstaple, Devon, admitted eight charges of false representation after faking a car accident in Jordan.According to the BBC, the court heard how Parisis then moved to Aberdeenshire and changed his name to Neil McClaren, receiving £51,000 in claims.Parisis, who was originally from Jordan and had debts of £379,000, forged documents to show he had died in a car crash while on holiday in Amman, Jordan, in 2009.Parisis assumed his fresh identity and moved to Peterhead, Aberdeenshire, after claims were made on a total of 15 different insurance policies.His wife, Stiliani Parisis, 41, was also convicted in connection with the fraud. The couple's four children believed their father was dead for three months before being told the truth and moving to Scotland with their mother.His wife, aka Anabella McClaren, stayed behind in Devon to play the part of the bereaved widow.The court heard that he liked a champagne lifestyle, but his £135,000 a year salary was not enough to pay off rising debt.His defence team said the fraud was driven by desperation in the end.Judge Paul Darlow described Emmanouil Parisis as "very much the prime mover" in the case.He said: "In my judgement, the claims were fraudulent from the outset and there was a degree of professionalism about them."His wife, who also admitted fraud charges, was sentenced to 16 weeks, but was released because of time spent in custody and a curfew.Mrs Parisis's sister, Nikoletta Theodoropoulou, who knew he was alive, was also arrested by officers investigating the case.She was acquitted of fraud charges because she was not involved in the claims.Speaking to the BBC, Detective Inspector Mike West, from Devon and Cornwall Police's major crime investigation team, said the officers had to follow an "extremely complex individual who was complex and calculating". He added: "There are four children that have been extremely damaged by his lie."They were told at an early stage that he died, and they were informed later that he was alive."The psychological effect on these children is, to me, incalculable."
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: death,Dentist,fakes

Debt resolution company under threat of losing consumer credit licence

Thursday 24th March 2011 A debt resolution company could face closure after coming under fire from the OFT.First Step Finance Limited (FSF) is under threat of losing its credit license having been issued with a ‘Minded to Revoke’ notice by the OFT.A member of the Debt Resolution Forum (DRF), the notice was issued to the Stockport-based company on December 6 last year.The OFT took action in a separate review against a number of companies licensed to provide debt counselling and debt adjustment services in September 2010.This did not include FSF and primarily involved small businesses, mainly sole traders, and it is understood that 40 of these businesses have so far surrendered their licences. It is also understood that just under 40 companies may face serious action, including licence revocation or having conditions imposed on their business operations.   There are several trade associations that represent both debt solution providers and debt solution intermediaries, notably DEMSA, the DRF and the newly formed Association of Professional Debt Solution Intermediaries (APDSI). Alasdair Warwood, Secretary General of APDSI said; “We understand that the new OFT debt management guidance is substantially expanded and will be issued in April for consultation.“This will include more focus on misleading advertising, improving the quality of debt advice and the role of debt solution intermediaries and lead generators.“The role of APDSI is to help compliant debt solution intermediaries understand the prevailing best practices and regulatory environment in which they operate.“This includes ensuring that they are properly licensed and understand the rules of marketing to potentially vulnerable consumers. APDSI will be contributing to the consultation process on behalf of its members who want to genuinely assist indebted consumers who are facing increasing hardship in the current economy.” Vance Parsons, Director of EuroDebt Financial Services, suggests that the actions by the OFT to generally improve working practices and free the debt solution industry of rogue, non-compliant companies are welcomed.Unfortunately, in the past those companies who did not comply with the OFT’s Debt Management Guidance Notes tended to give the industry as a whole ‘bad press’. According to Mr Parsons, any action to have these companies closed down or seriously improve standards is good news.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: Company,Consumer,Credit,licence,losing,resolution,threat,under

OFT consults Debt Management sector on CAB super-complaint

Debt management companies (DMCs) will this week have received a questionnaire from the OFT as part of its ongoing investigation into the Citizens Advice super-complaint regarding the marketing practices and fee charging of credit brokers and other service providers, including DMCs. The complaint submitted to the OFT includes suggestions of new regulations to protect consumers, but this could do more harm than good to the compliant companies providing valuable debt solutions.

Strict legislation and restrictions are of course already in place, and the majority of DMCs are compliant and strongly support the OFT in its action against rogue companies to help build consumer confidence. To enhance the existing legislation monitoring and enforcement could be strengthened to help identify non-compliant parties as early as possible in the credit brokerage, debt solutions and claims management sectors.

Vance Parsons, Director of EuroDebt Financial Services said: "In their super-complaint, Citizens Advice has suggested a number of regulatory reforms that could be made in the credit market. We feel there are sufficient regulations and advertising standards in place and that it is more a matter of the regulators using their existing powers to take action against non-compliant businesses, of which we are of course fully supportive. 

“It is important that compliant debt solution intermediaries and providers are not penalised for using legitimate marketing techniques that fall within the various advertising standards, some of which only came into force in March 2011. Clearly the worrying trend of unauthorised deductions from consumer bank accounts or credit cards, for which little or no service is provided in return, need to be dealt with as quickly as possible."

Alasdair Warwood at APDSI said: "When APDSI was established as a trade association for debt solution intermediaries in late 2010, one of our primary objectives was to look at existing marketing practices and help educate compliant and licensed businesses, typically IFAs and credit brokers, with regard to assisting people who have been identified to be in financial difficulty. 

“With restrictions on credit through the recession it is inevitable that many brokers are finding more and more clients that don't meet lending criteria, but who require a debt solution where a debt consolidation loan or re-mortgage may not be viable or in the client's best interests. Many brokers will have marketing databases where current and former clients are facing multiple interest rate rises in 2011 and a continued erosion of disposable income."

Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: consults,Management,sector,supercomplaint

Debt resolution we ARE, debt management we are NOT!

A debt resolution company which made headlines in last week’s DMT newsletter has hit back at claims that they work in ‘debt management’.

First Step Finance (FSF) claims it is frequently mistaken for a ‘debt management’ company, which has presented the firm with a number of challenges. FSF is currently subject to a review of its Consumer Credit License, which was instigated in December 2010. The company is fully co-operating and engaged with the OFT during the review process. The OFT raised a number of points which FSF claim are non-debt management issues, and un-related to the OFT Debt Management Guidance Review in September which saw 129 firms threatened with losing their consumer credit licenses.Ahmad Butt, Legal Director at FSF, said: “The Debt Resolution Forum (“DRF”) have been very supportive in giving guidance where none had been given prior to joining DRF and a detailed and independent audit by the Insolvency Practitioners Association has recently taken place on our systems and processes.”FSF is un-associated with the large number of traditional debt management companies that the OFT took action against in its review last year, and the company is a keen advocate of the review into practices and standards of conduct with the aim of removing rogue, non-compliant companies.  Managing Director Christine Whitehurst said: “The company remains committed to always working in the best interests of our clients, to resolve their financial difficulties, observing high professional standards and best practice guidelines whilst proactively improving the efficiency and effectiveness of our service to create sustainable growth.”Unlike traditional ‘debt management’ companies that simply manage consumers presenting debts with their respective creditors, FSF actively assists its clients to resolve their debt difficulties in the ‘shortest possible time’ (typically 12 to 36 months), focused upon their clients individual personal circumstances through its unique approach.  FSF was established in 2007 and claims to have saved its clients millions of pounds and disbursed payments to creditors in excess of £2 million.
Manchester debt firm is liquidated owing creditors over £2.2m
Wednesday 11th August 2010

Bankrupt football legend probed by police over loan fraud
Monday 2nd August 2010

Mortgage broker ordered to repay £1.5m of client money used to pay off debts
Wednesday 14th July 2010

Barclays lifts lid on banking write-offs
Wednesday 20th February 2008

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Posted in: Management,resolution

How Sound Debt Advice Helped me Get Back on my Feet

No one who has found themselves deeply in debt gets out of the situation without seeking advice.  While many find it extremely difficult to ask for this type of help, the fact is that most of us are not aware of our options and are usually not thinking straight when a massive wall of debt is resting on our shoulders.  Here is how obtaining debt advice from a qualified financial counsellor helped me decide which course of action was right for me and made it possible to eventually pay off my debts and get my life back.

My debt issues came about for a very common reason.  While I made good money at my job, that stream of income came to a halt when the economy faltered and my employer made a number of positions redundant, including my own.  While I was fortunate enough to find another job within a few months, my income was only a fraction of what it had once been.  At the same time, my accumulated debt load, which was somewhat easy to manage before, had become almost unendurable.  I knew I needed help, but had no idea of where to turn.

I began my search by talking to several debt consolidators.  These services helped me explore the option of an unsecured debt consolidation loan, as well as look at other debt consolidation loans for bad credit, since my own credit rating was beginning to decline.  While these were workable solutions, I wanted to explore other options before making a final commitment.

Before long, I found a counsellor who provided additional advice that made it possible to make an informed decision on how to proceed.  I found that, along with debt consolidation loans for bad credit, there were also bankruptcy options that might apply to my situation.  There was also the option of working out repayment plans with my creditors via a court approved Individual Voluntary Arrangement.  I was excited to learn that there were options other than an unsecured debt consolidation loan that would add to my debt before actually reducing it to any degree and that some of these options would also help to halt damage to my credit rating.

In my situation, the journey out of debt meant devising a new household budget and adjusting my spending habits to match my new circumstances.  With the aid of an IVA, I was able to eventually pay off my older debts without losing my home or other assets, even as I learned how to avoid creating new debt in the process.  The changes did not come easily and I did not become an expert at budgeting, overnight.

However, thanks to counsellors who were willing to help me move forward in spite of my occasional misstep, I was able to clear my debt, protect my credit rating and once again be able to answer my telephone and read my mail without fear of encountering a demand for payment on some overdue bill.  If you are in debt and feel the walls closing in, swallow your pride and contact a debt counsellor today.  The debt advice you receive could be the start of better days.

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Posted in: advice,Helped,Sound

Reliable Debt Advice Helped me Get my Life Back

People who have never been deeply in debt and find themselves unable to honour their obligations have no idea how black the days can become.  The constant fear of answering the door or the phone in case a debt collector is lurking on the other end, as well as the worry of opening mail that is loaded with demands for payment of overdue debts can be crushing to one’s ego.  Fortunately, there are ways to escape from this situation, if you can get the right type of debt advice, as I did.

While many people find themselves in poor financial condition because of a job loss, a divorce or a prolonged illness, none of those situations applied to me.  I got into debt because I don’t manage money well.  Thanks to the fact that I was making good money, I had no trouble getting credit and wasted no time in using it to buy whatever I wanted, whenever I wanted it.  At first, I was able to keep up with the mortgage payment, the credit cards and all the other credit accounts I established.  However, over time it became harder and harder, as the balances grew, until finally I had to admit that I was a prisoner to my debt and had no idea of how to get out of it.

It as at this point I swallowed my pride and admitted I needed help.  The question was where to turn for that help?  Fortunately, I was able to find a reliable debt counsellor who was willing to assess my situation and offer some sound advice, along with several options on how to not only clean up my debt, but also learn how to prevent the same situation from arising again by applying a system of debt and money management.

One of the first things my debt counsellor did was to help me investigate the different types of debt repayment options.  This included looking at unsecured debt consolidation loan options, with special attention to debt consolidation loans for bad credit, which unfortunately applied to me by that time.  I learned what to expect from debt consolidators in terms of covering my debts and allowing me to make one payment to them each month, in return.  I also learned the difference between debt consolidation and debt management plans, as well as how bankruptcy or the implementation of an Individual Voluntary Arrangement could work for me.

In addition to providing debt advice that included educating me on my options to settle my debt, the counsellor also helped me learn how to budget properly.  This was not an easy step for me.  For most of my life I had developed a pattern of buying whatever I desired, with no worries about how to pay for it.  In spite of the anguish this mindset had caused, I still had trouble moving to a more responsible way of managing money.  Thanks to a counsellor, who helped me recognise the benefits of the unsecured debt consolidation loan and even aided me in finding a reputable consolidator who offered debt consolidation loans for bad credit, I was able to start with a clean slate that allowed me to enjoy a decent standard of living and steadily pay off my debts.  Today, I still have to fight off the temptation to buy now and pay later, but my approach to managing money is very different from what it was a few years ago.  While I may not have everything I want in an instant, I have the benefit of never worrying who is on the other end of a telephone call or what horrors may show up in today’s mail.  For me, that makes managing my debts responsibly worth all the effort.

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Posted in: advice,Helped,Reliable

Surviving On A Budget

Before you start budgeting you need to know where you need to budget. Make a list of all of your outgoings; food, clothes, gas, water, toiletries, cleaning, electric, home/car insurance, fuel etc?By making this list you can see exactly what you are spending each month and this will give you a better chance of seeing where you do need to cut back Once you know where you need to cut back, you can now start looking at where you can start making changes. Making the changes is usually the hard part and the key to success is to start off small and gradually build yourself up, as you do not want to do too much too soon. Things that you can do to try and save money include; switching gas/electric supplier, shop around at different supermarkets to reduce your food bill, change or reduce your mobile phone contract, change or reduce your phone/broadband/cable TV package, take packed lunches to work or why not use comparison websites for home and car insurance to get the best deal.Once you have altered your budget and changed your spending habits, to be successful you need to make sure that you stick to it. Sticking to a budget can sometimes be very difficult, particularly if you are used to spending whatever you like on cards and such like. In order to be successful you need to be determined to stick to the budget and to get yourself out of debt.Once you have adapted to your revised budget and you are comfortably getting by, you can give the money you are not spending to your creditors. That is not to say that you will be able to afford full contractual payments, but you may now have enough surplus income to set up a repayment plan with your creditors.

If you have done everything that you can to try and reduce your outgoings and you are still struggling, you can still contact us as we can help you by advising you how to deal with your creditors while you make reduced token payments.

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

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Posted in: budget,Surviving

Budget 2011

Written by Lizzy on Monday 28 March 2011

The 2011 Budget has been officially announced and, after allowing time for it to sink in, here are some key points.

Starting from April 2012 your personal tax allowance will raise a further ?630 to ?8,105. April this year personal tax allowance will rise from ?6,475 to ?7,475.

What does this mean? You will now get to keep more of the money that you earn before paying tax and from April 2012 it is thought a further 260,000 people will be lifted out of the income tax bracket altogether.

From 6pm 23rd March fuel duty was cut by 1p per litre. In addition to this the inflation-based increase that was due soon has now been postponed until the start of 2012.

What does this mean? Fuel prices have been a big issue over the last few months with many people calling out for help bringing the situation under control. This is a step in the right direction, but there is still a rocky road ahead.

With unemployment soaring, up 50,000 apprenticeships will be created for young people out of work. On top of this funding will be given for 100,000 new work experience placements.

What does this mean? Younger people out of work have the opportunity to learn a particular skill or trade to help them secure full time employment and get them into work.

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

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Posted in: budget

Breaking News – Daily Mirror Stop The Debt Rogues

We at Payplan have welcomed the ?Stop the Debt Rogues? campaign launched today in the Daily Mirror. The Mirror?s campaign calls for a clamp down on the widespread bad practice by fee-charging debt management companies ? with an estimated 400 firms operating in the UK, many are ripping off consumers and not paying their creditors.

The debt management sector needs to be regulated as a matter of urgency to protect vulnerable consumers suffering at the hands of these unscrupulous providers. We have long called for the proper regulation of operators of debt management plans. As part of their call to action, the Daily Mirror has launched an online petition which is available by clicking here.

The debt management industry is currently regulated by the Office of Fair Trading (OFT) ? but when the OFT published its Debt Management Guidance Compliance Review, assessing a large number of firms in the debt management market, it identified a litany of malpractice. It said that 129 firms were non-compliant with Debt Management Guidance

If you are struggling with debts then please call Payplan on 0800 2802816.

Don’t forget you can also follow me on Facebook and Twitter.

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Posted in: Breaking,Daily,Mirror,Rogues