Debt

Our Debt advisors are Martin Kerr and Richard Cowen (not pictured).

         Martin Kerr

The Law Centre has 2 Approved Debt Relief Order Intermediaries; Martin Kerr and Richard Cowen.

 

Debt continues to provide a variety of casework for our debt caseworkers including advising on the implications of bankruptcy, Debt Relief Orders, challenging bailiff action including unfair bailiff costs for recovery of Council Tax arrears and also parking fines.

 

Harassment from creditors for small non priority debts and pressure to pay unaffordable amounts is often the final straw that prompts someone to seek debt advice.  

 

In this current economic climate many people in debt are often desperate for cash at the end of the week. Payday loans are advertising locally and on television frequently in the UK at the moment which is a worrying trend in this recession. Typically a Payday loan often leads the borrower into signing an authorization to repay the loan by deducting directly from their bank account the following payday. The loans are expensive in terms of APR and push the borrower deeper into debt. A recent study by Consumer Focus found “some short term borrowers can find using payday loans a positive experience, provided the loan is paid off in the short term”.

 

The advertising of “free debt advice” by fee charging companies is coming to an end at last following a crackdown on 'free debt management' advertising.

New rules mean companies will not be allowed to advertise a service as 'free' if the consumer has to pay anything other than unavoidable costs. Advertising codes run by Committee of Advertising Practice (CAP) and Broadcast Committee of Advertising Practice (BCAP) introduced from 1 September 2010 will hopefully make it difficult for fee charging debt management companies to advertise their services as “free”.

At present, debt management companies can advertise their services as free despite charging monthly tariffs that can end up costing customers huge fees. At the Wiltshire Law centre we often see debtors who seek our advice having fallen behind with payments under a fee charging debt management plan.

In July 2010 Consumer Focus released a report detailing that 1 in 6 (or 1.4 million) prepayment households had chosen to disconnect their own fuel supply in order to cut fuel costs in the last year. At the Wiltshire Law Centre in the last year we have assisted clients with fuel poverty and contacted energy suppliers to try to maximize debtor’s entitlement to appropriate tariffs and have had some great successes from grant applications to British Gas Energy Trust, EDF and Thames Water Trust Fund to reduce arrears for our clients. 

 

The Debt Relief Order (DRO) came into effect in April 2009 and will significantly help some people with debts over £5000 but below £15000.

Click here to find out more information about Debt Relief Orders and alternatives to Bankruptcy.

Click here for information on how to deal with Baliffs when you have Council Tax Arrears.