Delta Debt Management & IVA Advice » debt

Further debt management worries for Duchess

Nathan Cameron — Mon, 12 Oct 2009 12:34:58 +0000

Sarah Ferguson has sparked further rumours about the state of her debt management, after receiving a £17,000 bill from another one of her creditors.

The Duchess of York also received another threat of legal action after receiving the unpaid bill for more than £17,000 from Richard Owen, a PR consultant, for work to help the Duchess improve her image.

The demand also stated that if Ms Ferguson was unable to settle the amount within 21 days, then Mr Owen would be able to apply for the bankruptcy of the Duchess.

This is the fourth demand that the former wife of Prince Andrew has received in the last year, and fuels further speculation that she may be suffering with serious debt problems after her New York offices were closed with debts of over £600,000.

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “This news that another bill remains unpaid raises further concern for the extent of the duchess’ debt problems.

“I’d recommend she follows the advice the Queen is alledged to have told her, in that she needs to stop spending and seek some debt advice.”

The three companies who are believed to have issued writs against the duchess when she allegedly failed to settle their repeated demands for money included a bill of over £18,000 from a Hertfordshire- based accountancy firm.

It is understood that these have now been repaid.

Fergie’s recent debt management revives memories from the 1990’s when at one point her spending had resulted in a debt to Coutts bank for almost £5 million. Since then, the Duchess has tried to reduce her lavish lifestyle and become self-sufficient, by reinventing herself as children’s author, after-dinner speaker and the face for diet company Weight Watchers.

Further debt management worries for Duchess is a post from: Delta Debt Management & IVA Advice

Lenders seek to reduce debt problems

Nathan Cameron — Fri, 02 Oct 2009 10:12:38 +0000

Amid signs of an economic recovery lenders are trying to reduce the chances of developing debt problems by lowering limits on cards and tightening loan criteria.

A report by the Bank of England suggests that lenders will enforce stricter limits on those they give money to and reduce limits on plastic to reduce the amount of credit card debts racked up in the run up to Christmas.

The Bank’s Credit Conditions Survey also warned that more people would default on personal loans, as the profits made by banks had risen on credit cards and unsecured loan products.

This news comes despite signs of a recovery in the economy, as house prices and mortgage approvals have risen since the low levels seen during the height of the credit crunch.

Paul Samter, economist at the Council of Mortgage Lenders, said: “There are encouraging signs that households are coping better than expected with difficult conditions. Despite this, however, we still expect payment problems to increase in the coming months, given the weak economy and jobs market.”

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “Billions of pounds of taxpayers’ money has already been pumped into some of the biggest banks in Britain, yet lenders still seem relunctant to lend.

“As a result, this means that more people are likely to be in need of impartial debt advice, as they have fewer options to solve their financial problems.”

Debt specialists like The Debt People, Hamilton Locke and Chiltern, enable people that are struggling to repay their unsecured balances (personal loans, overdrafts and credit card debts) to regain control of their finances, whilst still repaying debts.

Lenders seek to reduce debt problems is a post from: Delta Debt Management & IVA Advice

Credit card debt written-off in landmark court case

Nathan Cameron — Thu, 01 Oct 2009 16:28:00 +0000

A judge has ruled in a landmark case that £8,000 worth of credit card debt could be written-off, after payment protection insurance (PPI) had been wrongly sold.

The claim was made by Lynne Thorius against MBNA, after she was charged thousands of pounds in PPI premiums on the Sunderland FC credit card she had applied for.

The credit card giant tried to force Ms Thorius to repay the £8,000 of credit card debt owed, but the Judge decided that an unfair relationship had existed between Ms Thorius and MBNA because of the way the lender had sold the card insurance.

Crucial to the prosecution’s argument was that Ms Thorius had not been told that MBNA would regularly receive commission payments from the insurance provider ITT London & Edinburgh, a subsidiary of the Aviva insurance group.

Judge Smart ruled that this “secret” commission meant the credit card agreement was unfair and therefore in breach of the Consumer Credit Act.

This point could potentially undermine many other agreements where PPI has been sold and open the floodgates for millions more people who are struggling to get out of debt after being mis-sold similar insurance products alongside personal loans, car finance deals and even mortgages.

Judge Smart also agreed with Ms Thorius’s lawyer that the credit card debt on Ms Thorius’s account was unenforceable because MBNA could not provide a copy of the original loan agreement, which is also a requirement under the Consumer Credit Act.

Judge Jacqueline Smart at South Shields county court ruled that the company should either pay Ms Thorius’s PPI premiums and interest back to her, or the value of the commissions it had received which so far has been undisclosed.

Ivan Cooper, Chairman at debt management specialists Chiltern, said: “This could open floodgates for millions more people who are struggling to get out of debt after being mis-sold similar insurance products.

“However consumers should always seek impartial debt advice first and shouldn’t just think that they don’t need to pay for their credit card debts and other balances.

“This case is a county court case so does not set any legal precedent. Each case is decided on its own individual merits and on the factual circumstances within it.”

Credit card debt written-off in landmark court case is a post from: Delta Debt Management & IVA Advice