Monday 29th of June 2009
Britons who are desperate to reduce their debt may have been tempted to offload their financial commitments to a firm which claims they will buy them.
However, seeking individual voluntary arrangement (IVA) advice could be a better option than using a debt transfer company, which the Independent said can prove an attractive option for those who want to get out of the red swiftly.
A spokesperson for the Office of Fair Trading (OFT) told the newspaper that there has been a "massive increase" in the advertisement of bogus schemes and reminded consumers that the law does not allow debt to be sold without the lender giving permission.
Despite the increasing occurrence of some people considering selling their debt, a spokesperson from the Ministry for Justice’s Claims Management Regulator told the Independent that new regulation "has significantly reduced cold calling, tackled misleading marketing and removed unfair terms in contracts with clients".
The OFT recently suggested to consumers they may want to contact their creditor to discuss their repayment options. One such avenue may be an IVA, which could allow people to reduce their debt repayment and freeze interest charges, taking the pressure off while they organise their finances.
- 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
- 'Advice needed' as interest charges mount
