P.O. BOX 5, FRODSHAM CHESHIRE WA6 6FL
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PRACTICAL
HELP TO RESOLVE DEBT COMPLAINTS & DISPUTES WITH UK LENDERS (BANKS,
BUILDING SOCIETIES & FINANCE COMPANIES) INCLUDING LIAISING WITH
OMBUDSMAN/ARBITRATOR & SOLICITORS. ALSO FREE DEBT
CONSOLIDATION, DEBT COUNSELLING, ENDOWMENT MORTGAGE, OLD MORTGAGE DEBT
ADVICE, CCA AGREEMENTS.
Before taking any action please see the Government Insolvency Service leaflet available online (in pdf format) http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/indebt-web.pdf which covers options in dealing with debt and the implications of each option.
The following offer free debt counselling giving guidance to help re-organise household budgets and set up debt repayment programmes. Note that priorities such as Mortgage, Council Tax and household utilities should be paid BEFORE any unsecured debts. Any payments due to the Child Support Agency also take priority. NOTE : IT IS STRONGLY RECOMMENDED THAT ADVICE IS TAKEN FROM AN INDEPENDENT NON CHARGEABLE DEBT COUNSELLING SERVICE BEFORE ANY DEBT CONSOLIDATION LOANS ARE TAKEN OUT. (If advice is taken from a debt counselling service advise the lender and request any proposed action be put on hold).
Personal debts including unsecured loans, catalogues, bank overdrafts are all non priority although setting up low payments can impact on your credit reference record. The benefit is making repayments that can be afforded and often persuading creditors to completely suspend interest charges. (NOTE : For
SCOTLAND, Money Advice Scotland (0141-572-0237)
For NORTHERN IRELAND, Association of Independent advice Centres(028-9064-9519)
www.adviceni.net )
NOTE : Stop House Re-possession Companies : A number of companies offer a service to find a buyer to purchase a house, and possibly rent the house back to the owner who wishes to sell. Before making a commitment to such a company please take advice from a reputable Debt Counselling Service. (see below Sale and Rent Back)
( 0800-138-1111 ) www.cccs.co.uk
Initial telephone advice covering all personal debt problems including actions threatened by debt collectors, bailiffs, catalogue companies ( whose debts are not enforceable without a signed Consumer Credit Act agreement ! ). In certain circumstances a Debt Management Plan can be set up where one payment is made via CCCS to creditors (free service). CCCS can also advise on Individual Voluntary Arrangements (IVA).
Debt Advice Trust
(0800 954 6519) www.debtadvicetrust.info
The Debt Advice Trust is a UK registered not for profit organisation which exists to enable people in serious debt to get advice on various debt solutions ranging from Bankruptcy to an IVA (Individual Voluntary Arrangements), Debt Management Plan and more besides.
( 0808-808-4000) www.nationaldebtline.co.uk
Similar to above although do not have facilities for Debt Management Plan. More of a self-help service. Can also advise on Bankruptcy.
National Debtline have several specimen letters on their site which are very helpful in writing to creditors
Credit Action Group
Linked to Consumer Credit Counselling Service (0800 138 1111). Advice about money management. Credit Action is a national money education charity and this website will tell you everything you are looking for.
( National number 0207-833-2181 ) www.citizensadvice.org.uk
As above but can sometimes write letters direct to creditors where only token payments can be afforded i.e. min payment £1 per month. Advice depends on finding a local CAB and the waiting time!
NOTE: Be wary of newspaper adverts for companies offering to reduce debt or charging for a service to make one monthly payment - CCCS can do the latter without charge. ALWAYS check what charges are involved !
HOUSE SALE AND RENT BACK : GREAT CARE NEEDED
Advice should be taken from a free debt counselling
organisation before making any commitment. Any offer for a house below current
market value should be treated as an undervalue. If you decide to do a
sale and rent back you should carefully check the rental conditions as these may
be be short term and the new buyer may decide not the renew any lease. see
information
http://direct.gov.uk/en/Nl1/Newsroom/DG_172337
http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=455448&in_page_id=8
http://www.oft.gov.uk/oft_at_work/markets/infrastructure/sale-rent/ (The OFT
site is essential reading) It is best to take advice from free debt counselling services
first. The Insolvency Service produce a free 'Guide to Bankruptcy'. Contact the Department of Trade and Industry for a copy. Also obtain free advice on IVA's and Bankruptcy from
http://www.insolvency.gov.uk/ For formal personal or business Voluntary
Arrangements contact a licensed Insolvency Practitioner. It is recommended that
a phone call be made to The UK Insolvency Helpline - Freephone 0800 074 6918
www.insolvencyhelpline.co.uk
for advice first. It is important to avoid insolvency practitioners who charge
and 'up-front' or 'set-up' fee. If further information is needed send an email
to adv@debtwise.co.uk for the 'DEBTWISE
IVA Help Sheet' Check costs as a formal Individual Voluntary Arrangement can cost £1500 to set up and creditors may still reject any proposals!
Many of the companies advertising to 'reduce debts' or 'make one monthly payment
over 5 years' actually set up an Individual Voluntary Arrangement. Debt Advice Trust
www.debtadvicetrust.org The Debt Advice Trust ( Tel 0800 9546518) is a UK registered not for
profit organisation created to help people in serious debt to get advice on
various debt solutions ranging from bankruptcy to an IVA, debt management plans etc. Debt Watchdog
www.debtwatchdog.com Provide independent debt advice and information or Debt
Management and IVA. For personal debt try CCCS (who can now set up IVA's)
or National Debtline (above) first to get free advice. Advice from a free debt
counselling service is strongly recommended before 'Debt consolidation loans'
are considered. See your Accountant and if necessary contact a licensed Insolvency Practitioner to take professional advice. Care must be taken
in dealing with Banks. Whilst in theory the bank might be supportive to overcome short term difficulties it might be tempting for them to call in the business overdraft !! DEBTWISE may be able to give PRACTICAL advice with regard to most Banking problems including business/ limited company debts especially where the bank have called in an overdraft. This area can be complex however and it may be necessary to take expert legal advice. If however the Bank are making unjustified demands urgent action could be required. DEBTWISE can also give PRACTICAL advice to those who have given bank guarantees, whether or not backed up by security, and the bank are taking or plan to take action to recover debts. Debt Forums Consumer Action Group :
www.consumeractiongroup.co.uk
What Consumer : What consumer
www.whatconsumer.co.uk/forum
Forum for consumer issues
Debt Forum UK :
www.debtforum.org.uk (Debt Forum is a support board allowing people
with debt problems to
Debt Watchdog : forum at
www.debtwatchdog.com Other Debt Help/AdviceBankruptcy
Debt Advice/Voluntary arrangements/ Individual Voluntary Arrangement (IVA)
Business Insolvency
share their experiences with each other. Members help and offer mutual support
and advice to others facing bankruptcy and similar debt
related issues)
YOU AND YOUR BANK ACCOUNT:
From budgeting to borrowing Moneymadeclear from the Financial Services
Authority
www.moneymadeclear.fsa.gov.uk has facts about getting the best from your
bank account. (Download leaflet from website or call 0300 500 5000)
Counselling - To search for a registered counsellor to go through debt or
other problems, The Counselling Directory may help.
http://www.counselling-directory.org.uk/debt.html
What Consumer
www.whatconsumer.co.uk has advice
and information concerning consumer issues, including debt management and debt
collectors Money Saving Expert
www.moneysavingexpert.com . This site gives helps about numerous financial
matters and deal including changing credit cards to gain an intererest
concession. Guardian Money
Advice Help
http://www.guardian.co.uk/money/debt http://www.guardian.co.uk/money/debt
Daily Mail Newspaper Help www.thisismoney.co.uk