Bad news for those trying to avoid their debts

Consumers hoping to write off their debts through a legal loophole have been dealt a blow after a recent ruling on six test cases.

Judge Waksman, sitting at the High Court in Manchester, has upheld that credit card companies need only provide a "reconstituted" copy of the original loan agreement.

Read more on this "reconstituted" copy and the way forward for consumers.

Lenders win the battle to chase debts for 6 years instead of 3

Plans to reduce the time period for which lenders can legally pursue consumers for civil debt have been shelved by the Government.

The whole credit industry opposed the moves citing that the courts would not be able to cope with the deluge of new cases as creditors dived into court overnight.

As a consumer though you should know your rights on payments of 'old debts'.

Debtwizard guide to dealing with old debts.

SunTalk - internet radio arm of the Sun newspaper - Wed 6th Jan

Mike will be live in the studio at 11.30 am Wednesday 6th January taking your calls, emails and texts on how to resolve your debt issues.

You can submit a question, or send your queries to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or text 87131 or call 020 33 64 7000 and get the answer.

In case you missed the last cracking show, you can listen to it for free:

Debtwizard on SunTalk podcast 27 Nov 09

Debt charities under threat

Debt charities could have their funding cut in 2010.

Scare-mongering I hear you say? Not necessarily, given a comment made to me by a Concervative Treasury spokemans at a recent conference in Manchester.

So where will this leave struggling borrowers?

Full article here Debt charities under threat

LBC New Year Debt clinic - with James Max

Mike Thomas will be in the LBC studio on Sunday 10th January at 6pm taking your calls, emails and texts with James Max.

This is a great opportunity to listen to some no-nonsense advice on how to get back in control of your debts.

Listen to LBC on 97.3 FM or at lbc.co.uk

Questions can be phoned on 0845 60 60 973 or text: 84850 standard network rate.

OFT and SOCA warns of Jamaican lottery scam

The OFT and the Serious Organised Crime Agency (SOCA) have warned the public to be on their guard against a lottery scam which has netted thousands of pounds.

The elderly are more vulnerable to this type of scam, please speak with family, friends and anyone that you think may be duped by this. Remember, once the money has gone, then its gone!

More on this and a case study.

What now for consumers after OFT pulls out of the bank charges test case?

Basically you have two options, first contact your bank, if it is not resolved after eight weeks then you can go to the Financial Ombudsman Service (FOS). The bank will pay a fee of £500 to the FOS when this happens and for you it is free.

Another option is that you may come under the 'financial hardship' rules which can apply where you are struggling to meet your commitments each month. However your situation can then be compounded by the bank adding interest and charges for late or missed payments.

More can be found at Debtwizard guide to financial hardship.

Lenders forced into court to repossess homes

Government announces plans to close legal loophole which enables lenders to repossess homes without going to court.

This is a positive move for home owners with mortgage arrears and the government must be congratulated for taking this step.

I have one concern though, more here.

Carry on Banking
 

This is a brand spanking new film about the banking industry and the set up of a rival bank called 'Pussy bank'.

Don't worry it is just good, clean humour in the carry on tradition.

Carry on Banking - A production from iBall.tv

Free Budget Wizard

The Budget Wizard can be used to help you avoid getting into debt. If it is too late and your finances are out of control then this unique form will quickly establish your position and predict how much your debt will increase over the next one month, 12 months or five years.

Completely free, web based and private. You can log in and work on your budget wizard anywhere there is an internet connection. Budget Wizard

Latest Debt News

The latest debt related news since the last email.

- Debt charities under threat

- Bad news for debt avoiders

- OFT warns of new Jamaican scam

- Bank charges - your other options

- Free budget wizard

- SunTalk debt clinic 6th Jan 2009

- Old debts to stay at 6 years ...

- LBC debt clinic with James Max

- UK debt numbers for November

- Lenders forced into court before..

- Carry on Banking from iBall.tv

See the news archive

Future Shows

Radio and television appearances can often be at short notice.

If you are interested in Mike's shows then keep checking the home page for details, homepage.

Quick Links

DebtWizard Budget Wizard - free

Designed to identify exactly what is going on with your finances. This form is unique with its built in debt predictor. If things look grim you can send it to us for further help.

- Start your own budget form

Radio/television/press

As well as radio and TV, Mike is involved with some of the national newspapers; you will find all these on our media page.

We upload the shows on a regular basis and there are still more to be added over the next few days.

- DebtWizard media page

UK Debt numbers for December - Christmas special

4.7m adults (10%) admit that they are still paying off debts from last Christmas (2008).

31% of savers don’t think they have enough money to cope in an emergency. In real figures, this equates to over 15 million people.

12.2m people – almost one quarter (24%) of adults in the UK – are hiding some form of debt (be that overdrafts, credit cards, store cards loans etc) from their partner, friends or family.

- View more credit stats here

Blog & Twitter

Mike is blogging and twittering, just click on either link

- blog - follow Mike on twitter

Top 10 sections on website

1. Bank charges latest updates
2. Budget wizard - free
3. Unenforceable credit agreements
4. Unenforceable credit agreements - firms that help
5. The Limitation Act (Old debts)
6. Six options to getting out of debt
7. Contact
8. Bank charges - RBS & NatWest jumping before being pushed?
9. Who we are
10. Credit card charges

We want to hear your story

If you're happy to share, we have numerous TV stations and newspapers looking for your story.

Have you been made bankrupt? Applied for an IVA? Do you have a horror story about dealing with a lender or company that you owe money? Are you harassed by debt collection agencies?

We are interested in your story, can we help you?