July 2011 ~ Debt Managements and Consolidation

Glasgow builder given record loan ban after breaching bankruptcy terms

A builder from Glasgow has been banned from applying for loans or acting as a company director for seven years after he broke the terms of his bankruptcy agreement.John Henry, 45, was brought before Stirling Sheriff Court accused of continuing to trade despite being declared bankrupt. A major investigation was launched into Mr Henry and his construction business by Accountant in Bankruptcy (AiB), which is the insolvency agency for the Scottish Government, and a number of fraudulent activities were revealed.Mr Henry was found to have used a variety of methods and a number of different company names to keep his business going, even though he himself had been declared bankrupt in 2009 due to his inability to tackle his debt problems. He was also found to have neglected his tax obligations for...

Posted in: after,Bankruptcy,breaching,builder,given,Glasgow,record,terms

Is The Citizens Advice Bureau Worth Your Time?

When looking for debt advice UK wide, one of the sources often cited is the Citizens Advice Bureau. The stated mission of this particular charity is to provide sound advice to consumers regarding issues that are pressing on their minds. Foremost among the advice offered by the Citizens Advice Bureau is debt consolidation, as well as advice on bankruptcy and other options open to consumers who find themselves in dire financial circumstances. While there are many supporters of the bureau, there are also detractors who raise valid questions about whether consumers benefit from utilising the resources it provides or if their interests would be better served by seeking debt consolidation advice, along with other forms of financial...

Posted in: advice,Bureau,Citizens,Worth

Football legend's £2m debt write-off sparks fury

Former Scotland and Blackburn Rovers captain Colin Hendry has been discharged from his bankruptcy and will only have to pay back £36,000 of a £2.1 million debt.Hendry, who also played for Glasgow Rangers, turned to drink and gambling after the death of his wife Denise and was declared insolvent in June of last year.Creditors were contacted by Hendry’s solicitor in writing to inform them that the retired star would be paying back £1000 pounds a month for the next three years – less than 2 percent of the original debt.One of the creditors, Hector McFarlane, is a former friend of Hendry and claims that the ex-player borrowed £95,000 from McFarlane and his wife in the knowledge that his debts were going to force him into bankruptcy.Mr McFarlane was incredulous when he spoke to the Daily Record:...

Posted in: football,legends,sparks,writeoff

In Profile: Dave Collier of CA Tax Solutions

We spoke with Dave Collier, Director of CA Tax Solutions, to found out a bit about how they help individuals and small businesses make savings on their tax bills....1) Firstly, what exactly does CA Tax Solutions do?We help owners of commercial property – from offices and warehouses to medical centres and furnished holiday lets – recover the unclaimed capital allowances that exist within their properties. If you’ve not come across them before, capital allowances are a valuable form of tax relief available to anyone incurring capital expenditure buying, building or making adjustments to commercial property. The problem, historically, has been that identifying capital allowances within commercial properties is extremely complex and...

Posted in: Collier,Profile,Solutions

The A4e blog: Isn't it time we did something about high cost lending

Last week the House of Commons rejected the idea of an amendment to the Finance Bill. This would have included with the Bill a review of high cost lending. This is a very real problem. In my view, one of the reasons the political debate often fails to make progress on debt issues and access to affordable and appropriate financial products for low income consumers is that the challenging issues are treated in isolation.... read more. Apprentice star's secret debts revealedWednesday 13th July 2011 Threatening debt management company loses licenceTuesday 5th July 2011Men Behaving Badly star in £1m IVAWednesday 22nd June 2011Repossession hotspots revealedWednesday 22nd June 2011FSA breakthrough in the fight against boiler room fraudWednesday...

Posted in: about,lending,something

Brits become slaves to their energy bills

The number of UK families falling in to fuel poverty is rising rapidly according to the Department of Energy and Climate Change.The worrying figures from their ‘Annual Report on Fuel Poverty Statistics 2011’ come alongside a statement from British Gas saying their fuel prices will increase come 18th August this year. Just eight months after prices were upped 7 per cent, the price of electricity will be raised by 16 per cent and gas by 18 per cent. This rise equates to an extra £200 pounds a year on their fuel bills.These are alarming numbers for householders and are not made easier by the above report claiming that the number of families that fell into fuel poverty had risen from 4.5 million in 2008 to 5.5 million in 2009. The majority of these...

Posted in: become,bills,Brits,energy,slaves,their

OFT's latest intervention saves landlords millions

Commercial landlords have saved millions due to the OFT’s High Court order against Foxtons. The OFT secured an enforcement order in February 2010 after they deemed Foxtons had breached the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs). The High Court ordered that Foxtons' renewal commission terms were not transparent. In an evaluation recently published by the OFT it states that Foxtons then amended some of its terms resulting in an estimated £4.4 million benefit to commercial landlords. In the report the OFT deems its intervention a success and is now warning the lettings agent sector to check their terms and conditions are fair and transparent. They are aiming to raise more awareness about the evaluation of the Foxtons case...

Posted in: intervention,landlords,latest,millions,saves

Jobless figures mask reality of households struggling on reduced incomes

The latest job market figures have revealed a startling rise in the number of families struggling on reduced incomes because they can’t find full-time work. The figures follow a recent report suggesting that increasing numbers of workers are being forced to take pay cuts or ‘downbanding’ of their jobs or face redundancy.With loss of income the top reason why people enter Debt Management Plans (DMPs), debt solutions specialist and DEMSA member Atlantic Financial Management is warning that while the headline jobless figures look positive, the underlying picture is much more worrying for families across the UK.The ONS figures have revealed that the number of employees and self-employed people working part-time because they could not find...

Posted in: figures,households,incomes,Jobless,reality,reduced,struggling

3.2 million households in the UK are in debt

More than three million households across Britain are suffering financial difficulty while another three million are financially vulnerable. Research, conducted by debt charity the Consumer Credit Counselling Service, reveals that 3.2 million households are either in debt action such as insolvency or are three months or more behind with debt repayments.This figure may be set to rise, however, as the proposed increase to electricity and gas prices will potentially affect the three million financially vulnerable households. Electricity prices will go up by 14.5 per cent, whilst gas will increase by 19.7 per cent.Any increase in monthly outgoings for these financially stretched homes, which are only just managing to meet existing repayments, would...

Posted in: households,Million

Experts slap £11.5bn price tag on contaminated land

UK homeowners could be hit with a bill of £11.5 billion for cleaning up contaminated land.A survey conducted by property search provider and conveyancing experts SearchFlow, revealed figures showing that 3% of all properties in the UK are affected by land contamination. Many of these homeowners may not even have caused the contamination but will still be held liable for the cleaning under the Environmental Protection Act 1990.The act states that responsibility for cleaning up any contaminated land falls to those who have caused it but the peril lies where this cannot be determined by a local authority – the person who currently owns or occupies the land is then liable for the cleanup.The average cost of cleaning contaminated land is about £250,000 per acre and, given that an 768,000 of 25.6...

Posted in: 115bn,contaminated,Experts,price

Millions facing financial difficulties

A recent charity report that has been released has suggested that millions of households across the UK are in financial difficulties due to debts, rising living costs, and wage freezes or cuts whilst millions more are in danger of falling into similar financial problems. The report comes from the Consumer Credit Counselling Service and paints a bleak picture of the state of millions of household finances.According to the report more than three million households are now facing financial problems across the UK. Moreover a further one third are facing financial difficulties and are described as ‘financially vulnerable’ by the Consumer Credit Counselling Service.The report shows that more than one million people are now struggling to repay their mortgage, and over 3 million are at least three...

Posted in: difficulties,facing,financial,millions

Is bankruptcy still affordable for Britons?

After the cost of bankruptcy fees rose by 17 per cent this year, Brits have been left wondering whether filing for bankruptcy is still an affordable option. The hike in deposit fees means that individuals or creditors must produce a substantially larger sum of money in order to secure a court order, and comes as a further reminder of the nation’s continuing debt troubles. Insolvency expert Melanie Giles explained: “Bankruptcy is becoming an option that is no longer there for those who may need it the most. “Individuals, who may be in debt through no fault of their own, perhaps through divorce, loss of employment or illness, may be being denied bankruptcy because they simply can't afford the application and Court costs.”The deposit...

Posted in: affordable,Bankruptcy,Britons,still

'Wannabe' football tycoon is bankrupt

The man who used the services of a convicted criminal in an attempt to take over Sheffield Wednesday has been bankrupt. Geoff Sheard’s bid for the club was fortified using the services of a convicted money launderer. Mr Sheard used a fake letter from an offshore Caribbean bank in his bid for Sheffield Wednesday, and is also suspected to have fronted a bid to take over Newcastle United. In 2008, after it was revealed by the Yorkshire Post that a bank letter sent to Sheffield Wednesday claiming that Mr Sheard had 100 million euros available for investment was fraudulent – it had in fact been produced by criminal financier Richard Frank Downes, Sheard’s involvement with the club bid came to an abrupt halt.The Dominican Republic bank which was...

Posted in: bankrupt,football,tycoon,wannabe

Apprentice star's secret debts revealed

Wednesday 13th July 2011 Whilst an Apprentice hopeful steps up his on screen performance, his real companies are falling into mounting debt.31-year-old Tom Pellerau’s company ‘M&P Consulting’ turned over just £500 last year and has a net worth of minus £15,597, whilst his second company ‘Foxfile Ltd’ has a net worth of minus £6,721, meaning that it owes more than its assets. It seems that winning the Apprentice would give Tom more than fame, as it would also offer him a £250,000 business investment from Lord Alan Sugar. A friend of Tom’s told the Daily Star Sunday: “Tom would be a fool not to want Lord Sugar’s money – and expertise. He’s got a very creative mind but he needs help with running a business.”Commenting on the state of Tom’s...

Posted in: Apprentice,debts,revealed,secret,stars

Final blow for IFA network director duo

Two former directors of Alpha to Omega IFA network have been fined for compliance failings by the FSA.Andrew Ruff and Richard Lindley, the directors in question, were fined after putting customers at risk of receiving investment advice that was not suitable. Richard Lindley was fined £14,000 while Andrew Ruff was banned, in addition to facing a hefty fine of £28,000.Alpha to Omega (UK) Limited (A2O), which was first investigated back in 2009 when the FSA reviewed some customer files of an appointed representative at A2O, entered administration in January last year. Because of the 2009 findings, A2O was ordered to review the company’s compliance systems by appointing a person with the relevant skill-set.The individual uncovered widespread compliance failings within the company, putting A2O’s...

Posted in: director,Final,network

In Profile: Nicki Stewart of Money Return Ltd

We sat down with Money Return Ltd's Nicki Stewart to find out a little bit more about the company and how they help people face up to their financial situations... 1. Firstly, what does MoneyReturn Ltd do?We help customers recover any money owing to them, save money on monthly outgoings and protect their future interests. Money Return looks at most areas of personal cost, both past and present, and reviews each one to maximise monthly savings and money recoverable from claims or available from grants. We do this by offering consumers a without obligation comprehensive money saving review in the comfort of their own home. 2. What’s the best advice you can give to consumers to minimising the chances...

Posted in: money,Nicki,Profile,Return,Stewart

One in four unemployed Scots considers suicide

One in four unemployed young people in Scotland have been so depressed they have considered suicide, a new report reveals. Online mentoring service The Future You collated the responses of more than 750 individuals across the UK to highlight the negative effect that unemployment, and a subsequent fall into debt, is having on young people.Two thirds of the Scots surveyed revealed that being classified as a Neet – Not in Education, Employment or Training, made them feel bad about themselves, whilst one third often felt that their “life was being wasted”.Patrick Gilford, of Future You, told the Scotsman: "Traditional methods of getting young people into work aren't working. Young people have told us that career advisers and Job Centres were...

Posted in: considers,Scots,suicide,Unemployed

Fuel prices forcing drivers to make a permanent pit-stop.

Financially squeezed drivers have been hit hard this year by the increasing rise in fuel prices. As a direct result, more households are seeking debt advice to deal with the rising costs of driving.Within the last year, 1.3 million motorists have given up driving indefinitely, as they can no longer afford to run their vehicles. New research from Sainsbury’s Car Insurance has also revealed that 76 per cent of remaining road-users are being forced to change their driving habits to save money.However, for the many who do not have the option to change their habits (i.e. those with long journeys to work) a debt solution could provide peace of mind, as they would not have to sacrifice their lifestyle or indeed their job. Included in those changes, motorists are altering their fuelling habits. 26...

Posted in: drivers,forcing,permanent,pitstop,prices

Another case of debt collectors using pressure tactics

by Nazma Noor on July 12th, 2011 Following on from our recent blog post about the debt collection letters sent to Lloyds TSB customers in debt management plans, this week we came across another instance where a debt collection company put a customer under pressure to pay back his debts.This story initially came to light when “Phil”, the debtor, posted a question on the ClearDebt Community. You can view the community thread here: I am being pressured by a debt collection agency.For anybody who is being pressured by debt collectors, here are some key points.People in debt can sometimes receive aggressive sounding letters which seem to be sent from an external debt collection company, acting on behalf of the original creditor. However in a number of cases we’ve found that this supposedly external...

Posted in: another,collectors,pressure,tactics,using

Unpaid tax debt causes £1.6m hole in Staffordshire council budget

East Staffordshire Borough Council has revealed that residents and businesses which are not paying their council tax and are failing to take action on their debt problems have left a £1.6 million hole in the local authority’s budget.The council said that after months of chasing tax debts, it had now been forced to take legal action to recover the money. Burton magistrates have granted multiple liability orders which will allow the council to pursue £260,000 of debt from 498 households in the area. Its debt recovery agents will also work to claw back a massive £1.4 million debt which has been racked up in business rates by 80 companies.A council spokesman clarified the local authority’s position on tax debt recovery, and advised anyone who is struggling to pay any bills or taxes to seek immediate...

Posted in: budget,causes,council,Staffordshire,unpaid

Derbyshire man caught dealing drugs to tackle debt problems

A 24-year-old man originally from Glossop in Derbyshire has been caught attempting to deliver drugs to Dundee in a deal designed to help him tackle his debt problems.Peter Hadley, 24, was arrested by police leaving a hotel in Perth with more than a kilo of heroin in his possession. He was caught after a tip-off informed police that Hadley was involved in supplying drugs and they spotted his car outside the Travelodge hotel whilst on another call. In addition to the drugs, which were believed to have a street value of £116,000, Hadley also had around £1,700 in cash on his person.The High Court in Edinburgh heard how Hadley had serious debt problems, and it was this that motivated his crime. He had apparently borrowed money from an acquaintance in Liverpool, and the interest on the loan was...

Posted in: caught,Dealing,Derbyshire,drugs,problems,tackle

Overstretched finances lead to debt for Midlanders

Over recent years many people from all around the UK have found themselves facing rising levels of personal debt as a result of the difficult financial climate, soaring bills and inflation, and in some cases a reduction in income. One recent report has shown that many people from the Midlands are now struggling with debt and getting deeper into debt as a result of having finances that are severely overstretched.According to the report many people from the Midlands are no struggling to make their salaries last for the whole month, leaving them with a shortfall between when they receive their monthly wage and when they next get paid. Many of these people, who are having to cope with higher petrol prices to get to work, higher food prices, soaring bills, and spiralling living costs, are having...

Posted in: finances,Midlanders,Overstretched

New OFT Debt Management Guidance Makes Cases Like DCM Apex Less Likely

Debt resolution company, ClearDebt, is pleased that the OFT’s new debt management guidance, published on Tuesday June 14th June is likely to outlaw “full and final settlement” schemes such as those run by companies like DCM Apex, whose clients ClearDebt has been working with since that company went into administration on 2 March 2011.Commenting, ClearDebt CEO, David Mond, said:The guidance makes completely clear that it is to apply to firms offering full and final settlements and also that only in exceptional circumstances will a firm be permitted to retain clients’ funds for more than five days. Further, the guidance stipulates that a company cannot hold on to monies that should be sent to creditors unless both debtors and creditors are made fully aware of the fact and it requires client...

Posted in: Cases,guidance,likely,makes,Management

ClearDebt recommends The ClearCash Prepaid MasterCard

For anybody who is in debt or struggling financially, we often recommend setting up a new bank account – particularly if you have debts, such as an overdraft or credit card with your bank.As an alternative to basic bank accounts, we recommend our ClearCash Prepaid MasterCard® for anybody who has a poor credit history, and wants a payment card which is widely accepted. The ClearCash Prepaid MasterCard is a payment card which doesn’t let you go overdrawn and has no late fees – you can only spend what you have loaded onto the card.Another feature of ClearCash is the online BudgetMaster tool which can help you manage your outgoings and identify areas where you are overspending.Here are some of the other great features:Standing order and bill payment...

Posted in: ClearCash,ClearDebt,MasterCard,Prepaid,recommends

Do you trust kitemarks?

Increasingly kitemarks are being used by companies in their communications materials to signify importance and trust to consumers.Kitemarks, or logos from third parties are ever more evident these days, and I’m not just referring to the financial sector. Perhaps the most outstanding example of third party logos are flat screen TVs which manage to plaster ever more combinations of the weird and wonderful stickers of high tech features that your 42? plasma is capable of.In the consumer finance sector, third party logos and kitemarks are also seeming to trend. This week saw the launch of a new kitemark in the high street banking sector.Vote in the poll and leave your views below in the comments. If you voted Depends, do explain your thoughts...

Posted in: kitemarks,Trust

Check the license of a debt adviser

Last year ClearDebt blogged briefly about how to check the license of a debt company with an explanatory video of Consumer Credit Register.Well, the consumer borrowers champions Zero-credit whom occasionally guest blog here at ClearDebt have produced an excellent in depth video explanation of how to fathom the search page of the Consumer Credit Register.As Zero-credit states in the video, with so many credit and debt companies being closed down, it’s easy to worry about picking a dud…There is a remarkable amount of information available online, sometime it takes more effort than normal to uncover it.Next week ClearDebt will blog a similar tutorial on a related topic, stay tuned.ClearDebt’s Consumer Credit License is 0565479 and the company registration number is 5157741.By Paul Gailey...

Posted in: adviser,Check,license

The Daily Mirror, John Denham MP and fee-charging debt management companies

by Andrew Smith on June 22nd, 2011 Dear Tricia and John,I read both your pieces in the Daily Mirror:I do agree there’s no room at all for rogue debt management services – and I strongly believe that the coming 12-24 months will see the industry I work in and believe in contract to about half it’s current size – at least in terms of the number of companies trading.That could be a disaster for debt advice in the UK, of course, because the free-to-client sector tells us they can only deal with half the demand.But, I believe fee-chargers will be able to take up the slack and that they will do so without causing consumer detriment. Tricia, I believe we are on the brink of being fully regulated and that we will thrive as a result.John, it was good to see you say that there are some “excellent companies...

Posted in: Companies,Daily,Denham,feecharging,Management,Mirror

Parents raid kids' piggy banks

With the financial squeeze increasing, more parents than ever are dipping into their children’s bank accounts when in financial difficulty, a survey has revealed. With many parents trying to save for their offspring’s futures, a shocking 57 per cent now borrow from their children a recent survey has found, highlighting the need for professional debt advice to be sought. New figures have revealed that 57 per cent of parents now rely on their children financially, frequently borrowing from their dependent primary school aged children. The research carried out by Clydesdale and Yorkshire Banks found that one in two parents would not hesitate to borrow money from their children aged between five and twelve. Mother’s were the worse culprits...

Posted in: Banks,parents,piggy

Accountant repays just £1 after £26k fraud

A Lincolnshire accountant has been given a suspended jail sentence for committing fraud, after being caught by HM Revenue and Customs. However, since he is now bankrupt, he has only been forced to repay £1 of the funds he swindled. Alan Budd, 56, of Nurses Lane, Skellingthorpe, meddled with cheques from clients adjusting the payee name to his own firm, AMB Accounting. The fraud came to light when a client of Budd’s was due £9,000 in tax rebates for overpayment, but never received the funds. At Lincoln Crown Court yesterday, prosecutor Jeremy Janes said: “A number of individuals were affected. The amounts vary from a few hundred pounds to £5,000.“For two years he was entitled to relatively hefty tax rebates of about £9,000 each...

Posted in: Accountant,after,fraud,repays

Ex-football Chairman embroiled in fresh fraud scandal

Former Tipton Town FC chairman, Bill Williams is being probed by police regarding three further fraud incidents. It was revealed earlier this month that police are investigating three fresh fraud cases, after the accountant was jailed for illegally pocketing more than £276,000 from the life insurance and pension policies of a murdered father. Bill Williams, of Chester Road, West Bromwich, spent the swindled money on luxury family holidays to the USA, season tickets for Aston Villa football matches, and extravagant family parties he also invested large sums into Tipton Town FC. A further five individuals have come forward to police, claiming to be victims duped by Williams, but his involvement is yet to be confirmed. According to...

Posted in: Chairman,embroiled,Exfootball,fraud,fresh,scandal

FSA bans two brokers for 'deliberate failings'

The Financial Services Authority (FSA) yesterday banned two insurance brokers from working in the financial services industry after they were found guilty of misconduct. Andrew Porter and Alexander Brincat are no longer eligible to work in the industry after the FSA carried out investigations which uncovered a number of failings, including a failure to monitor the financial position of Brincat’s insurance firm Wise Owl Services Limited, which has also had its permissions withdrawn. Brincat was the sole director and a shareholder of small firm Wise Owl, which specialises in insurance policies for buildings and life insurance. According to the FSA, between September 2009 and August 2010 Brincat failed to monitor adequately the high cancellation rate of life insurance policies sold by...

Posted in: brokers,deliberate,failings

Chaotic state pension deters young savers

Making the state pension simpler could spur millions of younger people to save more towards their retirement, new research shows.A Populus survey for the National Association of Pension Funds (NAPF) found that half (47 per cent) of those aged between 18 and 34 - more than six million people - would save more for their old age if they knew how much state pension they would get.Surprisingly, younger people felt much more strongly than older age groups about a better state pension. Joanne Segars, Chief Executive of the NAPF, said:“They’re keen to take more control of their retirement, but they need a clearer state pension foundation on which they can build their own nest egg.“If they could see the state offer might not be enough, they’d be more...

Posted in: Chaotic,deters,pension,savers,state,Young

The A4e blog: Self-employed and small business personal debt

In 2008, at the heart of the financial crisis, our advice helplines started getting a new thread of calls from people who were self employed or running their own business. A significant number were trades people, heavily reliant on the property building and development markets which had slipped into crisis point. Whereas before they had enjoyed a good relationship with lenders, suddenly very different behaviours were emerging. Foreclosures began, where before a couple of bad months and skipped payments due to poor trading would have been accepted. Most of the calls to our advisors came in crisis, with a number even calling from outside the court building, very late in the day. Our analysis of some of the financial information our clients...

Posted in: business,personal,Selfemployed,small

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