Thursday 23rd of July 2009
Individual voluntary arrangement (IVA) help could be of use to debt-ridden Britons who are worried about action taken by their creditors.
According to Credit Action, individuals who feel hassled or pressured by debt collectors should seek advice.
This may include not only speaking to creditors themselves, but also with a professional body which could provide guidance on how the problem can be addressed.
Britons who take out an IVA to clear their debt could find that one of the benefits is that creditors are prevented from taking any further action. Once they are reassured the money will be paid back through an IVA, many creditors may then give debtors breathing space.
Director of Credit Action Chris Tapp said that "there are still those rogue elements in the debt collection industry that are causing real problems by being aggressive, by harassing people".
The Manchester Evening News recently reported that loan shark John Kiely, 36, of Chapel-en-le-Frith, Derbyshire, had been found guilty of threatening and intimidating one of his customers.
He charged some of his customers interest rates of up to 2,437 per cent on loans.
By Mark Waterman
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- House prices won't recover until 2020
