Massive unreported change in bankruptcy procedure
This is unbelievable that as from April 6th this year Insolvency Service removed the mandatory requirement to advertise someone’s bankruptcy in the local paper and instead has decided to leave this at the discretion of the Official Receiver. No one knows about this other than the usual charities and Insolvency practitioners that act as trustees in the bankruptcy case, not even the media have reported on this!
I was so concerned that only a few a very few organisations were aware of this and not the general public I wrote to the Insolvency Service to ask why this was not made public knowledge back in April this year. This mandatory requirement to advertise anyone's impending insolvency has deterred many consumers from petitioning for bankruptcy, even though this would have been their best option. In the past all details of a bankrupt went into the local paper which included the bankrupt's full name, home address and last known occupation placed.
I must confess the Insolvency Service Policy Unit has responded in a very positive manner and I have been invited to their Stakeholder Conference on Insolvency Rules Modernisation on the 14 October 2009. They have also asked me for any suggestions I may have on how they should provide further publicity for the new insolvency advertising regime to reach individuals that are considering personal insolvency. Easy, just let me know about these major changes in policy and I will broadcast it on my website and through my radio and tv appearances!
Some will argue that we need to have publicity in all cases of bankruptcy and that this change of policy is making it too easy for those in debt. I disagree, I see the pain and suffering of consumers that have lost control and the ability to repay, instead they are plagued by debt collectors and harassed to pay monies they do not have, they become ill, depressed and often turn to alcohol, crime or gambling.
One wonders whether it is those that pay their debts are having a problem accepting those that cannot pay, the stigma of bankruptcy is fast eroding and it will be the general public that will need to change their views, not the bankrupt. Full article here Massive unreported change in bankruptcy policy
UK debt numbers for September 2009
Credit Action has just released the startling debt numbers that are relevant to consumers for the month of September, and they are a real concern. Just take a look at three I have selected;
3,600 applications for credit have been turned down every day during the past six months.
362 people today will be declared insolvent or bankrupt.
2,000 Consumer County Court Judgements (CCJs) were issued every day in the last three months of 2008. More here at UK debt numbers for September 2009
Thousands of consumers to get their PPI claims reviewed
At last some good news for consumers with the FSA (City watchdog) ordering banks to re open 185,000 complaints of mis-selling Payment Protection Insurance (PPI) dating back to July 2007. PPI is offered to consumers at the time they took out loans and is designed to protect them from making payments in the event of redundancy or illness. I know over the past few years one credit card provider made more profit on PPI than what they did on their credit cards.
PPI is highly controversial as it often does not always pay out on claims as the provider looks for get out clauses such as not paying if you were self-employed or on a fixed contract, which Consumers claim they were not aware of when they signed up for the loan, some consumers have said that they felt pressurised into taking the insurance, not surprising as often the additional amount the borrowers pays back can run into the thousands!
It concerns me that the FSA is giving these firms one more last chance; instead they should have taken stronger action first time round.
Naturally it is the lender’s interest to reject PPI claims hoping the consumer will give up the fight. The FSA needs to take a harder line in enforcement action against firms that have a poor complaints handling procedure. These firms need to be named and shamed so that consumers can decide to boycott them, that way they will really feel the cost for poor customer care and devious selling methods.
I would also like to see the FSA now look at how PPI has been sold with credit cards, secured loans and mortgages as I suspect the same selling methods have applied and where not so many consumers as yet have complained.
Anyone who feels they have been mis-sold the policy then have a look at our very own easy to read questions and answers, Letter 1 template to request your terms and agreement and Letter 2 template to demand a refund, all free here at the DebtWizard guide to Payment Protection Insurance (PPI).
DebtWizard gets a nose job!
That's right, I have been out of action for a few days after getting my nose repaired from my earlier days in the Metropolitan Police as well as the odd scrap with one of my four brothers. I've had all the jokes about the hooter, I'm up for a good laugh so send them in if you want.
