‘Debt’ News
Lenders Still Imposing Fee for Early Exit
Posted 2007-12-17
Despite more rigid enforcement against the practice by industry monitors, some mortgage providers are still assessing an exit fee against borrowers who change lenders. Online search engine mform.co.uk, a mortgage website which provides information to help borrowers make better decisions...
Read Lenders Still Imposing Fee for Early Exit
-
Delicious -
Digg -
Reddit -
Facebook -
Stumbleupon
Standards for Debt Management Put in Place
Posted 2007-12-5
Bankers and credit providers working together have developed a new set of standards to help people with high levels of debt. Individual Voluntary Arrangements (IVAs) will give them access to tools to help them manage their finances, according to the British Bankers’ Association (BBA). Providers that offer IVAs will be subject to industry-wide standards governing advertising, advice, information and documentation. The BBA explains that the standards, which should be in place by February 2008, will streamline the application process for IVAs. Angela Knight, Chief Executive of BBA, wants borrowers and creditors to understand that an IVA recommendation is the best way to resolve debt problems. The standards should give borrowers more confidence as they make decisions about their financial futures, according to Knight. The Government’s Insolvency Service reported 26,956 people in England and Wales were declared insolvent in the second quarter of 2007. ...
Read Standards for Debt Management Put in Place
Christmas Spenders May Feel Credit Crunch
Posted 2007-11-26
PriceWaterhouseCooper have released their “Precious Plastic 2008” report, and company accountants suggest a tightening of consumer credit in response to increasing debt loads and unrecoverable loans. The firm predicts that credit card providers will see a decline in profits as more and more borrowers find it impossible to make payments on their debt. Increased competition in the industry will compound the sector’s troubles. Credit companies have already lost nearly £4 billion, and PwC believes this will contribute to a substantial number of credit application rejections this season. The report indicates that the average adult owes approximately £33,000 in unsecured loans, double the amount in 2000. The rise in consumer debt is forcing banks to tighten their lending standards, according to Richard Thompson of PwC. He fears that many consumers will find it difficult to obtain credit in the months before Christmas. ...