Bankruptcy And Debts

THE paper trail that leads to a post-Christmas hangover of unpaid credit and store card debts promises to be bigger than ever this year. Times Money has learnt that credit card companies have beefed up marketing budgets to launch an autumn blitz of postal offers. consolidation debt mortgage

While banks always send more unsolicited credit card mailings in the run-up to the festive season 100 million postal offers are typically sent at this time of year expect your doormat to be more laden than ever with invitations to spend on plastic. consolidation debt help

Barry Stamp, joint managing director of Checkmyfile.com, a credit information business, explains: ßhe marketing costs of these campaigns equate to more than 50 a card. However, the banks know that they will get their money back, with interest, if they succeed in making their card top-of-wallet this Christmas. consolidation credit debt

Unfortunately, the majority of these deals will not offer market-beating rates of interest. Checkmyfile.com has found that the charges on postal credit card offers are about two percentage points above the market average. This is to subsidise the costs of marketing the deals to millions of consumers. bill consolidation debt

To make matters worse, interest rates are rising across the market. Next month Barclaycard will increase the annual percentage rate (APR) on its portfolio of nine million cards by between one and two percentage points. Most customers will pay 14.9 per cent, 17.9 per cent or 19.9 per cent. Egg, once synonymous with market-beating card offers, has increased its interest rate from 14.9 per cent to 15.9 per cent, while Capital One, HBOS and Mint have all raised their charges over the past year. consolidation debt quote

Yet we are not shredding these pricey deals when they fall through our letterbox. Research by the Direct Mail Information Service (DMIS) shows that more than two thirds of recipients are encouraged to take out a new card. And this is making card companies increasingly aggressive in their attempts to generate new business. consolidation debt lead

Ironically, it is the digital age that is largely responsible for this year¯ rise in postal offers. More than 22 million adults spent a total of 6 billion online last year, up 33 per cent on the previous year, and the banks expect this trend to continue. This is particularly good news for the credit card companies because they obtain a higher merchant service fee when an online purchase is made. consolidation debt non profit

Which, the consumer organisation, is advising borrowers to be extremely wary of pushy card offers. Mike Naylor, of Which, gives warning: Â common ploy is to give potential customers a picture of what spending on the card can bring, such as a gift for a friend or a holiday abroad. Benefits, which are of little value, are often thrown in, such as free insurance or fraud detection services. consolidation debt loan online

Postal offers also encourage existing customers to spend more. A Barclaycard offer last month was titled: Üemember, remember to use your Barclaycard this September. The promotion offered customers the chance to spend a day with the Barclays Premiership trophy if they used their card that month. consolidation debt home loan

Mr Stamp says that the APR of a card is always the best indicator of whether it is worth a place in your wallet and he urges customers not to be taken in by gimmicks. Visiting price comparison websites, such as www.moneyfacts.co.uk, is a good way to find a low APR. Customers looking for a card that offers 0 per cent on purchases over Christmas can take out the Halifax One Visa or the Sainsbury¯ Bank Visa cards. The Halifax card offers a twelve-month interest-free period, while Sainsbury ¯ offers ten months. christian consolidation debt

While there are more than 60 cards offering 0 per cent introductory offers on balance transfers, the majority now enforce a fee of about 2 per cent. Notable exceptions include the Amazon.co.uk credit card, which offers six months at 0 per cent on both purchases and balance transfers. consolidation debt information

A spokesman for Moneyfacts says: ßhere are drawbacks to deals that offer 0 per cent only on balance transfers. Most lenders enforce a payment hierarchy, where repayments are steered to the cheapest debt first, which means that spenders accrue a debt at the more expensive rate of interest. If you want to spend on your plastic you may want to consider offers such as the Capital One No Hassle Platinum card, which has a flat rate of 6.9 per cent. agency consolidation debt

And as for all the credit card flotsam that arrives in the post, you can send it to the Commons Treasury Select Committee, which is on the lookout for examples of irresponsible lending. Times Money has learnt that the committee last week agreed to keep a watch on the marketing practices of card companies. Angela Eagle, the Labour MP for Wallasey and a member of the committee, says: ßhe way that credit card companies are advertising calls into question whether the industry should be allowed to regulate itself. If they cannot keep to their own code of practice, there may be a need for statutory regulation. consolidation debt solution

checkmyfile -credit check - Hounded for repayment of someone else¯ debt

TINA IBBITSON suffered a terrible ordeal when she found herself being chased for a loan that she had not taken out. Mrs Ibbitson, an account executive from Nuneaton, Warwickshire, was contacted some months ago by Cabot Financial (Europe) Ltd, a debt recovery agency, and told that it was planning to come to her home the next day to collect goods to the value of an outstanding loan. Her husband, Andy, a finance manager, says: Øaturally, this scared the hell out of us, especially as neither of us had any knowledge of any outstanding loans. After many more threatening letters and verbal pressure, we sought advice from Citizens Advice, which suggested that we should ask for a copy of the original loan agreement. california consolidation debt

This showed that the loan of, 800, made in January 1996 for the purchase of a motorcycle, had been taken out in Mrs Ibbitson¯ former name from her first marriage, along with that of her ex- husband. Repayments on the loan had stopped in 2000. consolidation debt loan uk

Mr Ibbitson says: åe did not recognise the signature as my wife¯ and she categorically states that she has not taken out any loans with her ex-husband for this purpose. åe are still being pursued by the debt collection agency with phone calls and letters, which is very disturbing. We have tried to explain that this is not our debt and even sought the help of the police, but we have hit a brick wall with the debt collectors. consolidation debt equity home

Cabot says that it acquired the debt in December last year from Bank of Scotland, part of the HBOS group, which provided the original loan under the AA badge. The debt was part of a portfolio of defaulted accounts. consolidation debt government

Cabot adds that it was originally told by Bank of Scotland that Mrs Ibbitson¯ was the only name on the account but accepts that a copy of the original agreement shows that the loan was in the joint names of Allan and Tina Earle. It also now accepts that Mrs Ibbitson¯ signature does not match that on the loan agreement. consolidation debt firm

Glen Crawford, of Cabot Financial, says: åe are now in contact with Allan Earle, who has acknowledged that the debt is due, and we will be pursuing him for payment. We are satisfied that Mrs Ibbitson did not sign the loan agreement and have taken action to remove her name from the account. We will also notify HBOS that we believe that a fraudulent application was submitted. We have sought to minimise any distress caused to Mrs Ibbitson while matters have been clarified. consolidation debt financing

But Mr Ibbitson says: Ñ would certainly not say that Cabot minimised the distress it caused us. Its staff must have made at least a dozen phone calls to us, as well as sending us numerous letters. We want to know why Cabot did not make basic checks such as looking at the loan agreement before chasing my wife for money. And why did it take two months to unearth a copy when we requested one åe are also less than impressed with the AA. With its brand name to protect, why does it not keep a tighter control on its appointed debt recovery agents Will it remove any black mark that may be placed against my wife¯ credit record An AA spokesman says: åe will ensure that Mrs Ibbitson does not suffer any damage to her credit record as a result of this episode and we apologise for the distress she has suffered. consolidation consumer credit

Debt collection agencies are regulated by the Office of Fair Trading (OFT), which has the power to remove their licence to trade. When the new Consumer Credit Act comes into force, which is expected to be in December, the OFT will be given wider regulatory powers, including the ability to fine debt collection agencies. consolidation debt free quote

Mr Earle says: Ñ have been contacted by Cabot and will pay off the outstanding debt in full. I cannot recall how my ex-wife¯ name came to be on the original loan agreement. Anyone with a complaint about a debt collection agency can call the OFT inquiry line on 020-7211 8402. Action Plan Make clear to the debt collector that you are not responsible for the debt in question. Ask for a copy of the original loan agreement and put everything in writing. card consolidation counseling

Ask for the name and contact details of the original lender. Barry Stamp, of checkmyfile.com, an independent consumer credit reference agency, says: Ñf the debt collector does not provide this, you can take action under the Protection from Harassment Act of 1998. consolidation debt lender

Write to the original lender explaining you were not party to the loan agreement. Do not ignore any default notices, even if you have no responsibility for the debt. These set out the lender¯ identity, the size of debt and when the debtor has to pay. Respond by reiterating that you are not the debtor. If you find a debt collection firm is acting unreasonably you can refer it to the Office of Fair Trading, which can, in the last resort, remove the company¯ consumer credit licence. calculator consolidation debt

Check your credit file with the credit reference agencies Experian (0115-934 4050, www.experian.com), Equifax (020-7298 3000, www.equifax.co.uk) and Callcredit (0870 0601414, www.callcredit.plc.uk). If the lender or the debt collection agency has registered a black mark against you, you will probably need to secure the lender¯ assistance in removing the negative entry from your file. You can send a cheque for to each of the agencies for a copy of your file, or you can pay checkmyfile.com 6.95 to do a thorough search on all three. best consolidation debt loan

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Your neighbours may be affecting your Credit Rating

Some credit score cards use the payment history of all residents within a postcode as part of the calculation. best consolidation debt

Email: Password: Password reminder Home Check your Credit Report Free Credit Score Find a Lender Debt Advice Centre Check your Postcode Free Identity Theft Check Why can't I get credit Joe Morgan 16 July 2005

The Times CREDIT card offers pour through letterboxes across the country as lenders battle for custom. But if you are a virtuous borrower, on time with payments and in control of your debt, you may be in for a nasty shock they do not want you as a customer. best company consolidation

When it comes to credit card applications, the financially astute are increasingly being rejected. In the past, you had to have a list of county court judgments to your name and a history of reckless borrowing before the banks would give you the cold shoulder. But lenders are now using information held at credit reference agencies to be more picky. consolidation debt lending

If you have a history of paying debts on time, lenders may be reluctant to take you on or may even turn you down flat. Brian Bufton, above, a 67-year-old retired engineer from Kidderminster, knows what it is like to be unwanted by the big banks. After receiving an unsolicited credit offer from Morgan Stanley in April, he applied for its Platinum card, expecting to be welcomed with open arms. business consolidation debt

But Morgan Stanley has yet to reply. Mr Bufton sent two letters of complaint because he could not understand why his application was being ignored, especially as Morgan Stanley had actively sought his business. advice consolidation debt

Mr Bufton is a virtuous borrower. He has never missed a payment on his Nationwide and Goldfish credit cards and has paid no more than50p in interest since he first borrowed on plastic 12 years ago. When Times Money raised Mr Bufton¯ case with Morgan Stanley, the US bank blamed nsufficient address labelling and ostal delays for its failure to respond. It said that it has yet to process his application, but insisted that being oo good a customer would not be a reason for rejection. consolidation debt interest

However, experts claim that some banks are covertly turning down customers for exactly that reason. Barry Stamp, joint director of Checkmyfile.com, which helps consumers to understand their credit files, says: åe have a steady stream of customers who are turned down for no reason at all. These include people with good jobs who have clean credit files. consolidation debt refinance

Credit reference agencies store customers borrowing histories, past addresses and details of people with whom they share credit accounts. Banks use this information to give you a credit score each time you apply for credit. As well as providing an indication of who is likely to walk away from debts, this enables the banks to identify the most unprofitable applicants who will not pay a penny in interest. consolidation debt finance

Times Money has learnt that some credit card companies are turning away applicants because they have a low rofitability score. A shroud of secrecy surrounds profitability scoring, but Nick Wilson, head of research at the Leeds University Credit Management Research Centre, says that the practice has been around for about two years. consolidation debt plan

Mr Wilson says: Âpplicants are put through a scoring system, which in the past was based only on their creditworthiness, but now they are scored on other factors, such as whether they will be profitable customers. People who are going to use the card efficiently and not make the card issuer a profit are being declined. This is increasingly common as people switch cards to take advantage of low-interest offers. consolidation debt personal

So-called rate tarts, whose pursuit of 0 per cent credit cards costs the banks billion a year, are rejected because they are likely to walk away after the free credit ends. Young professionals who rent and often move house are also in danger of being unable to obtain a best-buy loan or credit card. consolidation debt management

Even a sizeable income may not stave off rejection. A chief executive of a building society told Times Money that despite having a very healthy bank balance he was turned down for a mobile phone after a credit check because he was not on the electoral roll. consolidation debt secured

How to handle rejection

If you are turned down for credit, lenders should give you the main reason why your application was rejected. You should contact all three agencies to obtain a copy of your file because they are each likely to hold different information about you. If you do find any mistakes on your file, ask the agency to contact the lender to amend the information. Credit reference agencies are powerless to alter data on a credit file if the lender insists that the information is correct. If you and the lender disagree, contact the Information Commissioner (www. .gov.uk), a body responsible for enforcing data protection laws. consolidation debt florida

Your rating can be adversely affected by too many credit searches. If you are applying for a loan or credit card at a bank or building society branch, ask it to carry out a uotation search rather than a full credit check. canada consolidation debt loan

If you need help to understand the data on your credit file, you can find guidance on the internet at www.checkmyfile.com. Back to press pack consolidation debt nonprofit

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checkmyfile -credit check - How does your credit rating compare to the rich and famous Email: Password: Password reminder Home Check your Credit Report Free Credit Score Find a Lender Debt Advice Centre Check your Postcode Free Identity Theft Check How does your credit rating compare to the rich and famous

Leading online credit checking service checkmyfile has undertaken the first major overhaul to its website since being the first to provide online credit reports to consumers in March 2000. calculator card consolidation

To mark the completion of an 18-month project, UK consumers will now be able to compare their postcode credit rating with that of the rich and famous. To help raise consumer awareness and understanding of credit scoring and ratings in a light-hearted way, checkmyfile has included a new feature which illustrates how we are all affected by the information held about us by allowing consumers to compare their postcode credit rating with that of a host of household names. consolidation debt unsecured

Consumers can see how their postcode credit rating matches up to stars that include: Posh and Becks, Jeremy Clarkson, Tom Cruise, Jade Goody, Wayne Rooney and Colleen McLoughlin and Richard Hammond, as well as many others. consolidation debt free loan

Research carried out by checkmyfile shows that consumers would, unsurprisingly, need to move to a postcode with a very high credit rating of 934 to match 5-star credit ratings of the calibre of Posh and Becks and Andrew Rreddie Flintoff. consolidation debt high loan

To match top TV stars like Jeremy Clarkson and Noel Edmonds consumers would need to look for areas with a good 4-star rating and a credit score of 879 and 875 respectively. There are a number of well known figures who many consumers may be surprised to know live in areas that closely match their own postcode credit ratings. These include Charlotte Church (791), Tara Palmer-Tomkinson (760) and Mylene Klass (724), with more modest 3-star postcode credit ratings. The average postcode credit rating is 750. consolidation debt free help

The new checkmyfile site also includes services, each one unique in the UK, which help consumers to understand more about credit and to help them avoid falling victim to identity fraudsters: Credit reports from all three of the UK¯ credit reference agencies in the same, easy-to-understand format The ability to compare credit reports with one click Free credit scores and detailed explanations Individual tailoring of credit products based on consumers personal credit ratings consolidation debt ohio

Postcode data-search tool, including postcode credit ratings and identity theft hotspots. Free interactive identity theft risk checker, to help consumers understand which of their lifestyle habits are leaving them exposed to fraudsters. Commenting on the new site, Joint Managing Director Barry Stamp says: ×illions of consumers have no idea of their credit rating, or of how it affects them, until it is too late. Usually, the first they know of the information held about them is when they are unexpectedly declined credit or are turned down for a job or for privately rented flat. checkmyfile has been designed to take away the mystery and to help consumers to get the cheapest deals available to them. advice consolidation debt free

Editor's Note

The credit ratings are based on postcode areas, which are compiled principally from census data and court and insolvency information already in the public domain, and aggregated to around 18 households to protect the privacy of individual residents living in the postcode. This gives lenders and other companies a broad indication of the financial risk of consumers with a current address living within a postcode. consolidation debt free online

checkmyfile is fully independent and was the first in the UK to provide consumers with online access to their credit files, to offer consumers the ability to check their own credit score for free, to give plain English explanations of how credit scoring works and to help consumers protect themselves from identity theft. consolidation debt new york

With over 1.3m registered customers and visited by over 20, 000 unique new visitors every day, checkmyfile is ranked within the World¯ top 1% of all websites. For further press information please contact: Richard Goedegebuur at checkmyfile on 01872 241386 or email: richard.goedegebuur@checkmyfile.com Back to press pack consolidation debt student

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checkmyfile -credit check - Missing Dad on Father¯ Day

Tough new measures to name and shame deadbeat dads as part of a drastic shake-up to the defunct Child Support Agency have been announced. Local Government reporter Marissa Carruthers takes a look at what the proposal means. With Father's Day just round the corner, children are digging deep to buy presents and cards to show just how much they care. But while most will be celebrating, families where dads have gone Awol are often left fighting just to make ends meet. card christian consolidation

And with claims that dozens of absent fathers are slipping through the net, the Government has unveiled plans to scrap the controversial Child Support Agency (CSA) and replace it with a tough new body. by consolidation debt

In a bid to clamp down on the estimated 34 per cent of people who are failing to stump up child maintenance cash, the CSA will be replaced by the Child Maintenance and Enforcement Commission (C-Mec). C-Mec has harsh powers to come down on distant dads who refuse to pay for their kids. These include naming and shaming, confiscating passports, imposing curfews and taking cash directly from bank accounts if parents fail to co-operate. consolidation debt uk

John Hutton, Work and Pensions Secretary, said: "There are a small number of parents who seem to think that paying for their kids is something they can simply choose not to do. "It isn't. And these new powers will mean that non-payment brings real and lasting penalties. consolidation debt mortgage

"The new rules will be simpler and more transparent, making it harder to hide income and giving us the power to deduct money directly from bank accounts as well as earnings." While critics of the move have described it as "gimmicky", many have welcomed it as a way to crack down on the increasing number of absent parents. Father-of-three Stephen Fletcher claims a tough new stance is what is needed to get parents to take responsibility for their kids. Mr Fletcher, of Rutherford Square, Red House, was a former member of Fathers for Justice and launched splinter group the Real Fathers for Justice, climbing to the top of the Wearmouth Bridge to campaign for his cause. The 36-year-old said: "It's a good thing. People in a predicament like me, as a former Fathers for Justice, member can see there are blokes out there that go out of their way to have one-night stands and just don't care about their children. consolidation debt help

"It's men like that who give us a bad name. There a lot of good dads out there and unfortunately there's a few that go out and shame the rest of us." But Mr Fletcher agrees the move is a good start in the bid to tackle absent parents and force them to take responsibility. consolidation credit debt

"I think a lot of people just walk away, " he added, "and that's an unfortunate way that life has changed. Maybe if we stepped back in time a lot of dads wouldn't have walked away from their children. The older days were definitely the better days when dads stood by their kids." bill consolidation debt

But Mr Fletcher, who also caused a stir when he dressed as Superman and climbed to the top of the Tyne Bridge, said communication is the key factor in resolving situations. He said: "I believe that communication between parents should be the main factor in life. This should be the number one priority and would certainly go a long way." consolidation debt quote

Angela Robinson, North East spokeswoman for Barnardo's, has welcomed the reform but warned that naming and shaming parents could have a knock-on effect on the rest of the family. She said: "Barnardo's believes the Government needs to give careful thought to the effects that introducing any new sanctions will have on the child's personal relationship with the non-resident parent. "The introduction of curfews could have an effect on contact visits with the child for example, while being able to view their parent on a website list of successfully prosecuted parents could risk exposing the child to unnecessary bullying and stigma. consolidation debt lead

"But we believe that improving the child maintenance system could provide some real benefits to the children we work with. It could help to move families out of poverty particularly the measures to ensure lone parents can keep more of the maintenance they receive rather than it being off set against benefit levels. However, in considering the effects of any changes it is important the Government gives sufficient regard to the effect they will have on second families. It is important the reforms do not help large numbers of lone-parent families escape poverty while driving children from the non-resident parent's subsequent relationship into poverty." consolidation debt non profit

Barry Stamp, joint managing director of online credit checking agency checkmyfile, has also warned that the proposals could mean some desperate dads losing their job or becoming homeless. He said: "Because of the use of public credit files by landlords and employers, it is very possible that absent fathers could be made homeless or lose their job if these orders are added to credit files and viewed in a similar manner to county court judgments or decrees. consolidation debt loan online

"The absent parent may well find that they lose their job or are refused a roof over their head by a landlord checking their credit file. This fate could also await innocent people who have no quarrel with the CSA's successor through the incorrect publication of information with the credit reference agencies." consolidation debt home loan

checkmyfile -credit check - What is it about you that lenders keep saying 'no'

Rejection is never pleasant, particularly when you have no idea why you are being turned down. And the reasons for not being accepted for credit are as mystifying as any. You may, for example, be rejected because you have missed payments in the past, or because you have a county court judgment against you. But there could be less obvious reasons. If you are not on the electoral roll, you may well be declined for credit because lenders are increasingly concerned about checking people's identities. How profitable you might be as a customer is important too. christian consolidation debt

If you are a "rate tart" someone who switches their debt around a lot in order to get the best deals a bank may regard you as less than desirable. Conversely, you could have a flawless credit history and still be turned down, as a bank might prefer to lend to people who do not clear their monthly balances and will therefore have to pay more in interest. consolidation debt information

As banks come under greater pressure to lend responsibly, they will also look at how many lines of credit you already have open, says Neil Munroe, spokes-man for Equifax, one of the main credit-rating agencies. In other words, they will be concerned with affordability as well as your credit history. agency consolidation debt

If you have been denied credit, your lender should be able to tell you whether or not your track record is a relevant factor. It's worth finding out why your loan application has been turned down, rather than simply making repeated applications, as multiple attempts to get credit can actually damage your rating further meaning you could end up paying more interest. Another good reason to apply for your credit file is that one in five people, according to new findings from consumer body Which, have discovered an error on their report. consolidation debt solution

It is now very easy to check your credit rating. You can apply direct to any of the credit-reference agencies Experian, Equifax and Callcredit or you can go through a website like Checkmyfile.com, which allows you to trawl through your reports from all three. california consolidation debt

Experian, Equifax and Callcredit charge for a copy of a file and it's worth checking each one as different lenders use different agencies and they don't all hold the same information. Alternatively, the Credit- Expert.co.uk service offers a 30-day trial that gives free access to your Experian report as well as identity-fraud alerts by email or SMS and advice on how to improve your credit rating. After 30 days, the service costs .99 a month. consolidation debt loan uk

Checkmyfile has three products: a single-agency report for .95; a triple- agency report for 6.95; or unlimited access to all three for 4.95 a quarter. The charges work out more expensive than the agencies' own reports because, Checkmyfile argues, its online versions are easier to understand than the hard copies from Experian, Equifax and Callcredit. consolidation debt equity home

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