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Debt and insolvency

Office of Fair Trading investigating payday loans

According to The Independent, the Office of Fair Trading (OFT) has increased investigations into payday loan companies.

The OFT sent investigators to 68 payday loan companies from January to May this year, compared to just one in 2011.

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Unpaid bills might be a more costly affair

In today’s straining financial climate many are finding it difficult to pay their bills on time. However, most people don’t expect a visit from the bailiffs over an unpaid parking fine.

Councils are increasingly turning to bailiffs for help to retrieve overdue money, and these visits are then added to the person’s bill. (more…)

Growing payday loan debt requires tighter regulation, says CAB

The Citizens Advice Bureau has said that the number of people running up debt as a result of taking out ‘payday’ loans has quadrupled in the last two years.

Attracted by the simplicity of obtaining the credit and driven by the need to obtain cash before payday, over a million people take out small, short-term unsecured loans. (more…)

Ex-Farepak directors face disqualification

Nine former directors of the failed Christmas hamper company Farepak are facing disqualification after the Insolvency Service started disqualification proceedings against them in the High Court last month. (more…)

What is the law on sale and leaseback?

Sale and leaseback is a method of financing a company which involves selling an asset and then leasing the asset back, so that it can continue being used. The process can be done with just about any asset, from machinery and equipment, to property and land.

Companies can benefit from such transactions as the sale generates cash for the company to help it through tough times, or to help it expand. There are additional tax benefits for the company as well, as the rent increases the operating costs of the business. (more…)

What is the process for recovering money owed to me?

If you are owed money and have been unsuccessful in your attempts to have it returned the next step is to write a letter. A solicitor can write this letter for a reasonable fee. This should outline the debt and set a time limit in which the debtor should respond. The letter should also include a preferred repayment schedule. (more…)

What rights do I have against creditors harassing me?

The Office of Fair Trading (OFT) issue Consumer Credit Licences to businesses that lend money to consumers. This is in accordance with civil law. The OFT also issues guidelines on fair and unfair practices, including guidelines for debt collection. If a business is found by the OFT to be using unfair practices in debt collection, they can lose their Consumer Credit Licence.

A complainant should take the advice of a solicitor before making a formal complaint about the practices of a company when collecting its debts. (more…)

Debt and insolvency Image

Our debt and insolvency blog covers the most current debt and insolvency issues for both individuals and businesses. If you are struggling with your finances and looking at what options are open to you, take a browse through our blog – you can find information on bankruptcy, alternatives to bankruptcy, IVAs, debt recovery options, your rights against creditors, and insolvency.

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