April 2011

Fraudulent Debt Advice Companies Forced To Close

Four debt advice companies have had their Consumer Credit Licenses revoked by the Office of Fair Trading (OFT). The OFT found all four companies had sent unsolicited letters suggesting some people had been wrongly sold an IVA and that for a fee, they could switch to a different solution. The firms, which were all connected and all operated out of the Dorset area, were Bankruptcy Ltd, Intl Marketing, UK Bankruptcy, and Mortgage Link.

The OFT said that the unsubstantiated claims made in the mailings represented a breach of the OFT’s Debt Management guidance.

A Fond Farewell To Trustee Paul

We would like to wish one of our Trustees – Paul Latham – the very best for his relocation to America.

Paul has played a significant role in the development of the charity over the last 4 years and we are extremely grateful to him for volunteering his time and expertise to Debt Advice Foundation. He officially steps down from his role as Trustee this month and we wish him well for his new life in the US.

Rising Cost Of Living Crippling Pensioners Finances

A study carried out by the charity AgeUK has revealed pensioners are finding it difficult to cope with the rising costs of living. 47% of those surveyed stated that they are were ‘just getting by’with a further 11% saying that they were ‘really struggling’ to cope.  Worryingly, 11% said they had fallen in to debt because of mortgages, credit cards or bank loans, whilst many had switched to lower cost substitute goods out of necessity.

OFT Closes Fraudulent Loan Websites

The Office of Fair Trade (OFT) has closed down 19 websites that were operating as credit brokers without a license. The OFT also highlighted that these websites where designed to collect data for the sole purpose of resale to other companies.

Consumers are being warned to remain cautious about entering their personal information on the internet, particularly when loan deals appear to be too good to be true.

Consumer Borrowing Increases Against A Backdrop Of Uncertainty

Recent figures from the Bank of England have revealed that consumers’ appetite for borrowing increased during February with the number of approved mortgages up on the previous month by 815 to 46,967.  Unsecured borrowing also increased by £768 in the month.  Remortgaging also reached a 2 year high, up 4,051 from the previous month, as home-owners exiting long term tie-ins looked to take advantage of lower interest rates.