A joint parliamentary report conducted in the wake of the insolvency of parcel delivery firm City Link has criticised current insolvency law for being weighted against workers.
The company, which had been experiencing losses for several years, called in the administrators on 24th December last year. The 2,727 employees and approximately 1,000 contractors found out about the loss of their livelihoods on Christmas day.
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.
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…)
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…)
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…)
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…)
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…)
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…)