March 2010

Many Still In The Red As The Green Shoots Of Economic Recovery Start To Show

According to research carried out by the British Banker’s Association, £1.3bn in consumer loans was issued in February 2010, which is an increase of £100m on the previous month and the highest on record since September 2009.

New Initiative Provides Welcome Relief For Consumers

A new initiative to tackle interim periods of consumer insolvency has been announced by the Ministry of Justice that will allow struggling consumers to make minimal token payments until their financial situation has recovered sufficiently to reinstate contracted repayments terms. In return, they will be given breathing space by their creditors, who will agree to freeze interest for the length of the arrangement.

New Industry Statistics Highlight Need For Tighter Debt Advice Regulation

Recent industry research on Debt Management Plans (DMPs) has revealed the financial nightmare many consumers are facing due to ill-advised debt solution schemes – further reinforcing the need for a new regulatory framework for debt advice providers.

Bankruptcy To Be Made More Expensive

With more people than ever before in the UK going Bankrupt (the Insolvency Service has provisionally estimated that 2009 will see an 11% increase on 2008, previously the highest on record), it has just been announced that the debtor’s Bankruptcy deposit is to increase from 6th April 2010 by 25%, from £360 to £450.