OFT refuses a doorstep lender a licence to trade.
U-Turn Financial Solutions Ltd have been refused for a consumer credit licence to operate as a 'doorstep lender'.
According to the OFT website following an investigation assisted by Kent Trading Standards Service, the OFT refused the application because it decided that the applicants were not suitable you hold the licence.
It is refreshing to see the OFT doing something positive about protecting vulnerable and desparate consumers that feel the need to approach these organisations.
Although Doorstep lenders are regulated matters can turn nasty if the consumer falls behind with their payments due to the higher than the norm interest rates. However for some consumers this form lending actually works because they cannot get access to credit from the usual sources such as the High Street banks. Hence the growth over the past few years for their services.
Anyone thinking of using a 'Doorstep lender' should visit the independent website lenderscompared.org.uk, and shop around for the best deal before they do any more and make sure they know exactly what they will be paying out.
Consumers coulsd also consider joining a 'Credit Union'. You can find more on how they work and search for one nearest to you here Credit Union Search.
More on this article cn be found here.
More on 'Doorstep lending' can be found at my DebtWizard guide to Doorstep Lenders.
The German invasion
Not content with pinching our sun beds the Germans are now invading the UK to use our insolvency rules to go bankrupt! New EU rules allow individuals heavily into debt to use other EU regulations and local laws to resolve them, which is what the hard up Germans are doing.
So why come to Britain to resolve their debt problems I hear you ask? Well in Germany it can take up to 7 years and Ireland 12 before the debts are written off, here in the UK it is between 6 and 12 months before discharge.
Although this is legally possible one has to question why other countries in the European Union are not revising the way over indebted consumers can resolve their debt issues.
I note that the numbers are pretty low at the moment, 59 in the year up to March 2009 but this has the potential to seriously get out of hand.
I am also concerned about the cost, I am reading reports of around £7,000 being charged for the service and how does a potential bankrupt raise this money? Hopefully not on their credit cards, one wonders what advice they are receiving re make this payment.
Whether you agree to it or not you could have a long and difficult argument about the ethics of it. So get use to the term 'a bankrupt tourist' as it is going to become more popular by the day.
More on the 'bankrupt tourist'
You can find more on bankruptcy including pros and cons, procedure and payment orders by visiting the DebtWizard guide to bankruptcy.
