Buy My Debt and The Trusted Partnership could not be trusted
Posted at 08:33 by Mirror.co.uk
Here's an ironic business name: The Trusted Partnership Limited.
It has just been shut down in the High Court in the public interest, along with sister firm Buy My Debt Limited.
They claimed to be a "debt purchase" operation, which would take over the repayments of borrowers with credit card debts and overdrafts in return for a fee of 10% of the debt plus an admin fee of £250.
The money was paid to The Trusted Partnership, while Buy My Debt was supposed to arrange repayment negotiations with the lenders.
But the Insolvency Service, which took the firms to court, says: "The investigation found that none of the debt sale agreements were approved by lenders and thus the client was left in a worse financial position, having paid fees to The Trusted Partnership Limited, but still having a contractual obligation to repay the full amount of the debt to the lender.
"Moreover, the business model had been promoted by the companies in the face of advice issued by the Office of Fair Trading such that the law does not permit the sale of consumer debt without the express permission of the lender."
The Trusted Partnership received fees of around £74,000 from clients. The Insolvency Service found no evidence that Buy My Debt entered into any negotiations with lenders.
Investigation supervisor Colin Cronin said: "In making the decision to wind-up these companies the High Court is sending a clear message that schemes which seek to deceive customers are not acceptable. The Insolvency Service regards this as serious misconduct and will take appropriate action against company directors who operate in this way."
The firms were run from Sheffield by Philip Allingan, 42, and Roy Hayes, 49.
Bankrupt gets 12-month prison sentence for disposal of assets
Posted at 08:36 by 7th Space
An investigation showed that between September 2007 and December 2007 Mr Vagharia, 53, of Leire Street, Leicester removed £63,000 in cash from three bank accounts to defraud the Official Receiver. Once a bankruptcy order is made, the bankrupt has a duty not to dispose of their assets other than for day-to-day living expenses.
Debt management company Debt Options weigh in on consumer credit card woes
Posted at 14:04 by Debt Lifeboat
Credit Action released figures this month showing the true extent of the UK's personal debt. Data up to May 2011 showed the average household hold debt stands at £55,870 including mortgages. According to the Government's own budget from March 2011, that figure will almost double to £106,486 in 5 years time. Debt management experts are warning that the UK's debt problems are far from over.
The UK government has launched the new Money Advice Service to inform people on how to manage their money. The service, which can be used online, in person or by ringing a helpline, aims to give free impartial advice to anybody who needs it, regardless of their financial situation.
Child Maintenance Payments and Individual Voluntary Arrangements
Posted at 11:30 by Debt Lifeboat
- The Court of Appeal held that the Child Maintenance and Enforcement Commission was not a creditor capable of being bound by an individual voluntary arrangement in respect of unpaid child support. - It was a necessary implication in the Insolvency Act 1986 that the creditors entitled to participate in an IVA, and who could be bound by it, are restricted to creditors with the capacity to make compromises of debts and liabilities.
Four in 10 Britons struggling to make it to payday
Posted at 11:22 by Debt Management Today
Almost four in ten people (38%) say they struggle financially to make it to ‘payday’, according to R3, the insolvency trade body’s, quarterly tracking research on the nation’s personal finances. This equates to over 18 million individuals across the UK.
Rumours that social network site Facebook is to offer a ‘pay later’ option for buying virtual goods online has prompted a warning from debt experts, who have said that users could end up falling into a debt spiral.