The Financial Services Authority (FSA) has stepped in to look at the heavy-handed sales tactics employed by many sale and rent back companies.

Sale and rent back companies have seen a massive increase in growth over the past year thanks to the current recession. Many companies have cashed in on the fact that many people are struggling to keep up the repayments on their mortgage and coupled with other debts, they are looking for a quick way to get their hands on a large amount of cash whilst being able to stay in their homes.  Read more... (276 words, estimated 1:06 mins reading time)

What Is a Credit Score?

A credit score is a way for lenders to decide how much of a risk they are taking by lending you money. The actual credit scoring system used will vary from lender to lender and different companies will have different attitudes to risk – so although one company may reject you for credit, another may be happy to give you a credit line.

It is a myth that there is a universal credit rating or a credit ‘black list’. However if one company believes you are too high a risk and won’t lend you money, it is highly likely that many other companies will take the same view.  Read more... (1280 words, estimated 5:07 mins reading time)

Experts have warned that money management firms are misleading consumers by claiming that credit card debt can be written off my exploiting loopholes in the law.

Many companies are now claiming that clauses in the paperwork for credit cards are in breach of the Consumer Credit Act and this means that the contracts are unenforceable and the debt can therefore be wiped out.

Consumers have been warned that although this has been true with some credit card debt cases, this does not apply to the majority of people. Clients often have to pay a large fee up-front to these debt management companies, only to find out that they are unable to wipe their credit card debt out and are therefore left even further in debt and out of pocket.  Read more... (222 words, estimated 53 secs reading time)

The ads look too good to be true – firms who claim that they can cancel your loan agreements.

Most things which look too good to be true usually are, and in these cases, the old adage holds true. The bold promises made by these companies may actually see you end up out of pocket.

Usually, the base their claims on changes to the Consumer Credit Act which was brought out in 2008. This act aims to help protect individuals from ‘unfair relationships’. Previously, the act deemed agreements unenforceable if they met specific criteria for example very high interest rates that didn’t reflect the risk, however the changes have made the act a lot more of a grey area. ‘Unfair relationships’ is a very broad term that may have different meanings to different people.  Read more... (325 words, estimated 1:18 mins reading time)

The latest figures from debt charity Credit Action have shown that levels of debt are increasing in the UK. The total amount of personal debt at the end of February 2009 was £1,458 billion with the average household debt excluding mortgages now standing at around £9,500. Including mortgages, the average household debt is £59,765 with the average UK adult owing £30,470.  Read more... (218 words, estimated 52 secs reading time)