The Debt Support Company News & Articles

38 year old Deborah Bowen advertised herself on eBay in hopes of finding an employer. According to Bowen, her home in Gloucester will be repossessed in two weeks’ time and posting on the auction site is her last hope to pay her debts.

Her post reads: “Sales Professional/BDM/W/house will do almost anything for work. Please read on, Could you be the right person to give me the right opportunity?”

According to the statistics posted by Council of Mortgage Lenders (CML), there’s a big probability that the number of repossession cases will increase in 2012. The numbers may show a decrease in the latter quarter of 2011, but experts agree that there would be a big turnout of properties taken at the end of the year.

Bowen is just one of the many people struggling to pay off debts to avoid repossession. She said “I am not someone who wants to take state handouts. I just want a paid job that will cover my mortgage, pay my bills and allow me to eat.”

There is still no update on whether Bowen was able to get employment and settle her debt.

Christopher Tracey of Elland, deposited a £15,000 check from his client, Mark Norcliffe of Forest Green Design into his bank account. The payment was meant for Inland Revenue but the firm testified that they never received any payment. Norcliffe confronted Tracey about it but the accountant just said that he already sorted it out. 47 year old Tracey informed the authorities that Norcliffe gave him the permission to deposit the money in his account. Harifax Courier on the other hand, disproved this statement by saying that the name on the check has been altered.

After further investigation, Tracey was found to have a £12,000 debt that needs to be settled immediately. According to Ken Green, Tracey’s barrister, his client was dealing with financial troubles, divorce and clinical depression during the time of the crime.

Judge Benson sentenced Tracey to 9 months imprisonment with 200 hours of community service and a 2 month suspension.

Due to the high magnitude of repossessed properties in the past year, industry experts fear of a more downward trend in the economy today.

According to statistics supplied by Council of Mortgage Lenders (CML), the numbers of reacquired possessions in the fourth quarter of 2011 showed a significant decrease from 9,300 in the third quarter to 8,500.

According to Bev Budsworth, Managing Director of a renowned debt management company, “I’m not surprised that levels of repossessions have continued to fall as, despite the economic doom and gloom, lenders are not seeing an increase in arrears or missed mortgage payments. Thankfully, due mainly to record low interest rates and increased flexibility from lenders, people are still paying their mortgage – but only just!”

“The CML is predicting 45,000 repossessions for this year so it’s clear that they expect things to get worse, not better. This isn’t great news, especially if you own one of the 101 properties being repossessed every day but at least it’s lower than previous years – especially the levels seen in the 90s.”

In the past two years, the numbers have been fluctuating but the difference in is only a hairline. Experts agree that this trend is just “the calm before the storm.” The statistics suggest that the recent trend indicates a possible increase in the amount of properties to be repossessed in 2012.

Budsworth added that “Unemployment and levels of repossessions are inextricably linked. The Council of Mortgage Lenders (CML) clearly thinks that repossessions will rise in 2012 at the same time as a continued rise in unemployment, currently at 8.4 per cent.”

“I believe the numbers will increase over the year as economic factors continue to affect people’s take home pay and disposable income. We are definitely seeing an increase in the number of people coming to us for help; many of these are self-employed who are finding income into their businesses decline. “

Industry experts agree that people who are suffering in debts must start establishing a tie-up with credible debt management corporations. This contingency plan will help abate the chances of bankruptcy.

I would like to thank you for all your help over the past 3 years. Without your service I would probably have been declared bankrupt some time ago. Because of the service you have provided to me I now have a “Fair” credit rating, I have avoided receiving any CCJ’s and I have undoubtedly saved thousands of pounds. I would have no hesitation whatsoever in recommending your services to anyone who finds themselves in financial difficulty. You have always dealt with my queries with the utmost professionalism and with incredible speed. You took a large amount of worry and stress out my situation and I am forever grateful for that. –Mr M

A couple have been banned from running a “debt sale” business which took more than a million pounds in fees from clients.

The injunction, imposed by Birmingham County Court, was granted after an investigation by Birmingham Trading Standards officers.

The firm, Credit Card Killer, was run by Mr and Mrs Basil Rankine.

They were accused of making misleading claims that people could legally escape their debts by selling them.

The Rankines were accused of running an unfair commercial practice, specifically by suggesting that people could be free of their debts within two weeks, by “selling” them for just one pound.

The couple also charged a percentage of the debt that had been supposedly offloaded.

“The company’s activities were causing significant detriment to vulnerable consumers,” the Office of Fair Trading (OFT) said today.

“It has been estimated that customers have paid over £1m in up front fees for a “service” which the OFT believes to be a scam.”

Warning

The Office of Fair Trading, which welcomed the court order, first warned against this sort of business last July.

It pinpointed an upsurge in adverts from claims and debt management companies, who had suggested that debts could be sold, and without the permission of the original lender.

“You cannot simply sell on your debt and its liabilities, and businesses that make misleading claims to the contrary are just trying to take advantage of consumers’ distress,” the OFT said at the time.

The regulator pointed out today that anyone who “sold” their debt to a firm such as Credit Card Killer ran the risk that they would still have to repay their lender.

They might also lose the fee they had paid the Rankines, would face action by debt collectors acting on behalf of their original lender, and might also ruin their credit rating.