DEBT CHIEF CRITICISES GREEDY CREDIT CARD COMPANIES

STRICTLY EMBARGOED TO 00.01hrs TUESDAY 23rd JUNE 2009

DEBT CHIEF CRITICISES GREEDY CREDIT CARD COMPANIES
CEO calls for responsible consumer lending as survey shows 25% increase in average credit card debt;  BoE base rate 0.5% but APR’s up to 29.99%
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In a worrying turn of events, the average person’s debt to credit cards, store cards or bank loans in the UK has risen to £6,400, reveals a survey released today by YouGov for Guardian Group Financial. (Figure excludes first mortgages)

CEO of Guardian Group Financial, Gary Forrest, said: “The shocking increase in average levels of personal debt is already taking its toll - over half of adults in the UK with these debts report being actively worried; some are losing sleep.   And only 23% have told their partner about their debts!  We call on credit companies to be much more responsible lenders.  Putting up interest rates is definitely not the way to go about it!”

“Our survey shows another shocking trend”, adds Forrest.  “The third and fifth largest areas where people are incurring debt on their credit cards are food and utilities, respectively.   We regard this as a warning sign.  Since April the Bank of England base rate has stayed at 0.5% and in that same period, average credit card rates have increased disproportionately - some by as much as 10% over the last six months.  Given that one person is made bankrupt or insolvent every 4.35minutes, (Credit Action Today figure) and that currently a UK property is repossessed every 10minutes (CML figure), consumers increasingly need help to face up to and manage their debt problems and regain control over their lives - not to receive yet more pressure from the credit companies.  This dangerous trend has to stop.”

Guardian Group Financial is a debt solutions company, offering a free counselling service to people worried about how to handle their debt Continues…/2
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DEBT CHIEF CRITICISES CREDIT CARD COMPANIES
CEO calls for responsible consumer lending as survey shows 25% increase in average credit card debt; BoE base rate 0.5% but APR’s up to 29.99%

situation.  They also offer free initial advice to clients wishing to settle their
debts in a manageable and realistic way.  The company is leading the way to forging a Code of Conduct for the sector, in lieu of legislation for which they have lobbied Government, to assist consumers in finding reputable debt solution companies.

GGF Debt Counselling Free Helpline is 08456 435 735

Notes to editors
Total consumer credit lending to individuals at the end of April 09 was £232billion.  In the last six months, despite the Bank of England base rate of 0.5%, twelve credit cards have increased their interest rates, including AMEX, Bank of Scotland, Capital One Bank, Halifax and Nationwide BS.  Some cards have increased charges by as much as 10%.  Capital One Bank’s APR can be as high as 29.99%.

Main GGF/YouGov Survey stats   (full survey available on request)
52% UK adults have consumer debt on a credit card, store card or bank loan
 (first mortgages arranged with a bank are excluded from these figures).
The mean debt of the 2,110 sample is £6,430; up 25% since April.
Highest mean: £7,643.10 in 35-44 age group. 

7% adults have debts between £10,000-15,000; 3% UK adults have debts over £30K

57% UK adults do not have a thought through pay-back plan.

51% UK adults with debt are actively worried about managing their debt; 15% are very worried and think about it all the time.  4% are distressed and losing sleep.

77% UK adults have not told their partners about their debts.

29% and 22% UK adults respectively have incurred credit card debt by purchasing food or paying utility bills.

59% UK adults with debt would be interested in looking at debt cancellation services where the lender has treated the consumer unfairly.

89% UK adults think that banks and other lenders should pay out to their customers if they have broken the Consumer Credit Act for example, increased APR’s without agreement.

Background information about Guardian Group Financial and Credit Issues

Guardian Group Financial (GGF) specialises in delivering credit management solutions.  The debt management programme serves as a gateway for people to start prioritising their debts and to regain control. It allows them to pay their household bills first (mortgage, gas, electricity, council tax etc…) then offer a reduced payment to their unsecured creditors (personal loans, credit cards, HP agreements etc…).

The Guardian Group Financial management team is headed by ex-High Street Home Loans director Gary Forrest and senior manager Allan Starling bringing their market experience and expertise to the debt management industry. They lead key personnel from the lending arena, the legal profession and the debt management sector.
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The arrears helpline is free to all consumers who may have a query or require assistance in controlling their financial situation. The helpline is aimed at treating those with immediate financial issues and as an advice vehicle for those treading a financial tightrope.  Guardian is in a position to offer callers a full debt management programme, if required, with a highly competitive pricing structure to help people with a short term solution to long term problem.

Credit Issues
Credit Issues operates as part of GGF.  Key changes to the Consumer Credit Act 1974 means that some credit cards and unsecured loans issued before 6th April 2007 could be unenforceable. Unfortunately some lenders/institutions may have failed to have internal systems robust enough to ensure adherence to the requirements of the Act in relation to consumer agreements.
Recent case law and amendments to the Act means that agreements can be challenged on the basis of their non compliance with the strict requirements of the Act which was designed to protect consumers.  For example the aim of the Act was to make sure consumers understood what rights they have and what redress was available if dissatisfied.
Irrespective of whom the credit card or unsecured loan provider is, so long as the balance is over £2,000 Credit Issues could help. Not only are we seeking to clear or reduce the balance of the credit card or unsecured loan, we will also seek to reclaim any mis-sold payment protection insurance or accident sickness cover together with interest.

ENDS

For further information, please contact:

Rebecca Osborne, Murray Harkin Associates Limited  Tel: 0207 043 5444
rebecca.osborne@mhapr.co.uk

Debt Consolidation Loans a Good idea?

When you are looking for an easy way to both minimise and reduce the number of payments going out each month, the option of a debt consolidation loan can seem attractive.  Debt consolidation can give you a new start because it permits you to consolidate all your loans into one monthly payment, usually secured against your property.  It’s often the case that the combined interest rates on all the individual loans or credit agreements you have will usually be higher than the rate of interest on a single debt consolidation loan.  Paying off all of the debt you have been juggling for years with a debt consolidation loan while maintaining payments against this one large loan may also help to improve your credit score.  If you’re fortunate enough to be a homeowner, this route can work, although some consolidation loans are available to tenants.

There are some caveats though.  A consolidation loan with a relatively low interest rate will be easier to get if you have previously paid your debts on time and in full and do not have any substantial arrears on payments of mortgage, personal loans or any credit cards. If you are in the position of juggling your finances to accommodate debt due to redundancy or sudden loss of income you may well have missed several payments or be in arrears with some lenders and your credit score will reflect this.  Consolidation loans at an attractive enough rate of interest may therefore prove difficult to get.  If you are in negative equity, there may not be sufficient capital “locked up” in your home to get the amount you need to cover all your outstanding debt.

The debt consolidation loan will have to be sufficient to redeem all your existing loans and agreements, so you will be paying the full the amounts outstanding plus any interest and possible early redemption charges as well as PPI sums that may be added to the total. The consolidation loan itself will involve you in new rates and charges going forward.
If your debt is largely in credit cards or unsecured personal loans, then consider challenging and reducing that debt entirely.  Key changes to the Consumer Credit Act 1974 means that the entire outstanding balance on some credit cards and unsecured loans issued before 6th April 2007 could be challenged through a now validated legal process.  The ability to challenge a regulated agreement on the basis of its non compliance within the strict requirements of the Act has proven to be a winning argument for ou sister company Credit issues, with several successful court cases already in the bag.

No matter whom the credit card or unsecured loan provider is, so long as the balance you owe is over £2,000 Credit Issues can successfully challenge the debt and investigate possible reimbursement for any mis-sold Payment Protection Insurance or accident and sickness cover together with interest.  So, while a consolidation loan may be an option to consider, before you commit to paying every penny of interest and charges on your debt and get involved with more charges, fees and interest payments on a continuing basis, find out if you could mitigate the debt you’ve got in the first place and reduce you outgoings to the point where you don’t need yet another loan at all.

The Recession In Numbers

Source: Credit Action, debt facts and figures, May 1st 2009

•    £84m is the interest the Government has to pay each day on the UK’s net national debt of £743.6bn. This is projected to rise to £118m a day (£43bn) in financial year 2010 – 2011.

•    Total UK personal debt at the end of March 2009 stood at £1,459 billion.

•    Total consumer credit lending to individuals over the last 12 months ending March 2009 was £232 billion.

•    Average household debt in the UK is £9,280 (excluding mortgages). This figure increases to £21,580 if the average is based on the number of households who have some form of unsecured loan.

•    Average owed by every UK adult is £30,475 (including mortgages).

•    During March 2009 Britain’s personal debt increased by £1 million every 50 minutes.

•    3,000 people made redundant every day and 1 in 33 people currently in work are expected to become unemployed in 2009.

•    1 property repossessed every 10 minutes.

•    1 person declared bankrupt every 4.5 minutes.

•    33,600 applications for credit have been turned down every day during the past six months.

•    Citizens Advice Bureaux deal with 7,241 new debt problems every day.

•    A recent poll conducted by the Resolution Foundation found that nearly 3 million people earning between £12,000 and £27,000 per year worry ‘all the time’ about their personal finances.

•    We work the first 83 days of any given year just to earn enough money to service the interest on our debts

•    Total credit card debt in March 2009 was £53.0bn.

•    The UK collective credit limit on credit cards is £158bn, which is an average credit card limit of £5,129 per person.

•    The average interest rate on credit card lending is currently 17.6%, which is at least 17.1% above current base rate.

The number that matters:  0191 482 7330 or visit our sister site Credit Issues

Don’t Give Up

Our sister company Credit Issues recent run of successes in challenging credit card and personal loan balances through the mechanism of requesting “true copies” of the original credit agreements has proved a powerful and effective approach. Several rulings by various District Judges throughout the country have validated that strategy.   In most of the successful cases to date, those “true copies” are simply not available and with no documentation forthcoming, a positive outcome for Credit Issues’ clients challenging the entire balance (whether they are being pursued by the original lending institution or the debt has been assigned to a debt collection agency) is highly likely.

After Credit Issues have carefully ensured your case meets the qualifying criteria, they then request “true copies” of the original agreement from your lender.   But what happens if that agreement actually does turn up? Does that mean your chances of challenging the debt have gone?  Not necessarily!  Credit Issues recently negotiated a reduction of over 75% to a major Visa credit card balance on behalf of a client in just those circumstances.

After intense scrutiny by Credit Issues experts, the agreement was found to have incorrectly stated the APR.  Following a without prejudice (off the record) offer by Credit Issues to the lender,  a reduction in the balance outstanding from £12,300 to £3,000 - a saving of over £9,000 – was agreed, much to the client’s delight.  The credit file will be recorded as “partial settlement” which the client is also pleased about.

So even if all seems lost, don’t give up challenging debt through Credit Issues.  They will only take on your case if they genuinely feel there is a good chance of success on your behalf.  Unlike some other debt/claims management companies that have jumped on the bandwagon, if their experts say your case isn’t strong enough, they will tell you so!  But such is the skill, expertise and experience of our in-house legal team across Guardian and Credit Issues that, if there is a way of successfully challenging or reducing your debt, we’ll find it.

Arrears stats illustrate continued need for intermediary assistance

Recently released Council of Mortgage Lenders (CML) arrears and repossession figures signify the continued need for intermediary assistance, claims Guardian Debt Management.

Guardian was buoyed by the CML revelation that there were 5,000 less repossessions in 2008 than it originally predicted.  However, other figures reporting that by the end of 2008, around 182,600 mortgages - or 1.57 per cent of the total - had accumulated arrears equivalent to 2.5 per cent or more of the outstanding balance, were of continued concern.

According to the CML these figures compared with 1.29 per cent, or 150,800 at the end of the third quarter of 2008, and 1.08 per cent or 127,800 at the end of 2007. The report continued that on a monthly basis, 219,100 mortgages were in arrears of more than three months at the end of 2008, up from 166,600 at the end of the third quarter of the year, and up from 127,500 at the end of 2007.

These statistics reflect the demand experienced since the January launch of Guardian’s confidential arrears helpline intended to arm UK homeowners with all the necessary advice and tools to help them through their current financial situation.

As the importance of holistic advice becomes paramount to an intermediaries offering, Guardian is urging intermediaries to fully assess their clients overall financial picture and utilise the arrears helpline facility if their situation demands it.

The helpline is manned by key personnel with vast experience in the lending arena, the debt management sector and with the backing of legal expertise. It provides a wide range of financial assistance and also offers callers an option to instruct Guardian to manage their situation ie to deal directly with the lenders, courts, creditors on the persons behalf.

However, this service will only be utilised in accordance with this being the best solution for individual client’s requirements. Guardian guarantees that it will not push clients towards a management service and the helpline remains committed to providing free and confidential specialist advice.

Intermediaries will receive a referral commission from any referral that enters into the full debt management programme.

David McCann, Managing Director at Guardian Debt Management, said:

“Since the launch of the arrears helpline we have been inundated with calls from concerned consumers over the pressures being felt by growing numbers experiencing credit difficulties and through unfortunate job losses.

“Intermediaries remain in an ideal position to help clients with financial concerns and make it apparent that there is help available for even the most extreme cases. Being in a position to advise clients accordingly could provide a real opportunity to open up new income streams and the resultant referrals these bring with them.”

Negative Equity Restricts Debt Management Options

Around a million home owners, mainly in the North of England, are thought to be in negative equity due to falling house prices according to a report from the Council of Mortgage Lenders (CML) issued this week. That number may rise as high as 1.18 million and that’s getting close to the 1.5 million households who found themselves in negative equity in the depths of the last housing market recession in 1993.

The areas blighted by negative equity do differ this time round from those which suffered 16 years ago.  Almost one in 10 owner-occupiers are in negative equity in the North of England, while East Anglia, which suffered badly in the 1990s, has remained relatively unscathed as has Scotland with just 1% of  owner –occupiers in negative equity.  Other than to make people sit tight while waiting for house prices to rise again or reducing the levels of re-mortgaging or secured loan applications, there may seem to be little immediate implications of this hike in negative equity.

However, it does further limit the options for homeowners who may also be facing general debt problems. Obtaining a consolidation loan will not be possible for people in these circumstances, and the only remaining course may appear to be bankruptcy.  That’s very much a “last resort” to be avoided if at all possible, but that same negative equity position may make the IVA (Individual Voluntary Arrangement) a more attractive proposition.  An Insolvency Practitioner will put forward a repayment proposal of somewhere between 30-%-50% of what’s owed to all your creditors.  Ordinarily, if you own property, those creditors will expect you to re-mortgage or sell the property to pay off the debts in full.  Obviously if you are in a position of negative equity you cannot do so, therefore it’s more likely that the IVA will be accepted in those circumstances.

So, I f you owe more than £20,000.00 to at least three creditors and you are a homeowner with a level of equity in your property that’s now less than the total of your unsecured debts, an IVA proposal is worth investigating  Unlike debt management, an IVA is a “full and final” settlement which means that any debt still outstanding at the end of the IVA is permanently written off and you are free of debt  and there may even be circumstances in which you can keep your home into the bargain.

The Economic Slump Demands Early Debt Advice

During a downturn, carrying debt can be more dangerous than ever and in general, the deeper the downturn, the more important it is for people with financial problems to seek debt advice early.

If your income seems threatened by the nation’s economic problems, how can debt advice help with the problem of a reduced income?  Coping with that position is never easy and entering a period of unemployment or reduced income with substantial debts can be difficult.  This is why you should seek debt advice at the earliest possible sign of trouble, whether it’s the threat of growing debt or the threat of redundancy.

A professional debt adviser can help set goals and figure out the best way of achieving those goals. For some people, it may just be a question of cutting back on their expenses, while others may need to look into a professional debt solution, but either way, the sooner you get some debt advice, the easier it will be to get those debts under control.

However, there is also some action you can take to alleviate your debt situation.  Guardian’s sister company, Credit Issues, is encouraging consumers to continue the battle against lenders collecting legally unenforceable debts.  So far during 2009 Credit Issues has successfully challenged over £1million worth of consumer credit card and personal loan debt with various high street names including the Co-op, Tesco, Royal Bank of Scotland, NatWest, Mint, Lombard Direct, Littlewoods, Direct Line and the debt collection company Intrum Justitia.
No matter how extreme the lengths some lenders will often go to collect these debts, they are not legally enforceable!

Credit Issues stresses that tools are available to consumers which mean that, if agreements do not comply with the strict requirements of the Consumer Credit Act 1974, some credit cards or unsecured loans taken out prior to 6 April 2007 could be successfully challenged (and indeed many already have been successfully challenged)  with the balances cleared entirely.

Successfully Challenging Intrum Justita

Guardian’s sister company, Credit Issues’ has had success in challenging a client’s credit card balance of over £16,000…

This result represents Credit Issues‘ second positive outcome over debt collection agency Intrum Justitia.   The client in question approached Credit Issues to look at what could be done to help following the assignation and sale of the debt by a major lender to the self styled Swedish “credit management” company.  Intrum Justitia’s reputation (at least among consumer debt forums and blogs)   for intransigence, high pressure hounding and adding questionable fees and charges to any debt,  left the client feeling less than optimistic that Credit issues could resolve the issue.

Credit Issues advised the client to continue to refrain from making any payments during the default period whilst “true copies” of the original agreement were requested from Intrum Justitia so that its in-house legal experts could scrutinise for compliance with the Consumer Credit Act (2007).   No such documents were forthcoming from the debt collector, but   what did emerge was a Statutory Demand to Pay (that could have meant bankruptcy).   As part of the Credit Issues service, the legal team took the matter to court on behalf of the client.

The District Judge ruled that the grounds on which the debt was disputed were in fact substantial and concluded that the agreement was indeed unenforceable and therefore set aside the Statutory Demand.  This successfully removed the client’s liability to the debt and he was able to clear the entire balance of £16,029.50.

More importantly though, this latest ruling further validates Credit Issues’  approach  to  clearing credit card and personal loan debt by challenging enforceability through  scrutiny of true copies of agreements.  In most cases, due to inaccuracies within a lending institution’s administration procedure, those true copies are simply not available and a positive outcome for Credit Issues’ clients is highly likely.  That’s true whether the client is being pursued by the original lending institution or the debt has been assigned to a debt collection agency.

Paying for Nothing?

If you’ve ever taken out a loan, mortgage, credit card or store card, or bought something on credit, then the chances are you were sold Payment Protection Insurance (PPI) at the same time.  The idea is that PPI covers your debt repayments if you can’t work because you become ill or have an accident or if you are made redundant.

But beware!  Most policies won’t cover you for conditions such as back pain or stress and if you’re on a short-term contract or self-employed, you may not be covered for any redundancy claim. PPI linked to mortgages, credit cards or store cards usually pays out for a limited amount of time only. On some credit card PPI, the insurance only covers the minimum monthly payment, meaning your balance may never reduce!  Most PPI policies only last for five years, so if your loan or finance agreement term lasts for longer than this, you’ll still be paying interest on insurance that has long since expired!

Aside from being ineffective, PPI is also expensive!   Adding PPI to a £7,500 five-year loan could cost an additional £2000-£3000.  According to a recent Citizens Advice Bureau survey, Payment Protection Insurance can add 20% or more to the cost of your credit agreement and since it’s estimated that there are over 20 million PPI policies in force throughout the UK, that’s generating almost £5 billion worth of premium income for the insurers!

That same CAB survey found that 85% of people who had attempted to claim on their policies had been refused.  Worse still, in June 2008, the Competition Commission found that average insurance payout ratios were:  Car Insurance: 78%, Home Insurance: 54%, Mortgage PPI:  barely 28%, Personal Loan PPI: a depressing 15% and Credit Card PPI:  a miserable 11%!

So how do you know if you’ve been mis-sold a PPI plan and what can you do about it?  The main difference between sales before and after regulation is that all sales before regulation were ‘non-advised’ because the ‘advised’ regime didn’t come in until regulation was introduced.  But if you were sold PPI before 14th January 2005, most firms or advisers would be still covered by a code of practice set by the Association of British Insurers (ABI), the General insurance Standards Council (GISC) or the Finance and Leasing Association (FLA).  All three codes of practice required advisers to provide information at the time the insurance was taken out to help you decide if the policy was suitable for you  Even then, advisers and firms were required to cover the same points as they must cover  today according to the current rules.

There’s a good chance you were indeed mis-sold (and can therefore recover your hard earned cash) if you can answer ‘NO’ to one or more of these questions:

• If the insurance was optional, was that made clear to you?
• Did the adviser tell you about any significant exclusions (especially pre-existing medical conditions)   under the policy?
• Did the adviser make it clear that you would have to pay for the insurance up front in one single payment and did you know you would be paying interest on it?
• If your loan or finance agreement was for longer than five years, did the adviser tell you that the insurance would run out before you had finished paying for your loan or finance agreement?
• Did the adviser tell you that you would continue to pay interest on the insurance premium, even after the insurance had expired?

So if you think you may have a case, contact us today to find out more and take action!

IVAs and How They Work

If you come to the conclusion that just trying to pay off your existing unsecured debts (bearing in mind that interest will continually be added) is impossible within your income level or would leave you in poverty for years to come, then your options at first appear limited to bankruptcy.

For many people, bankruptcy could actually end up being the cheapest way to resolve their debt situation.  It costs around £500 to make yourself bankrupt at the local County Court, but this “last resort” action does have severe and long lasting consequences, especially on your ability to gain credit in future and should be avoided if at all possible!

Other, less drastic options include a consolidation loan.  You’ve seen them advertised on the TV!  Take out a (usually secured) loan and lump all your debts into one monthly repayment. Not only does this mean putting your home at risk, but if you are in this position, your credit rating may mean you can’t get such a loan in the first place, and even if you can, monthly payments could still be crippling.

You could get a debt management company to negotiate with your creditors to accept a reduced payment schedule. Creditors are under no legal obligation to accept reduced payments or a suspension of interest in this way, so each creditor would have to be approached individually to see if they will agree to it and of course you do have to pay all your debts in full.  It’s costly, time consuming and if the debt management company is unsuccessful in stopping interest you’ll probably end up being charged more in interest than you are actually making in payments, which means you’ll never get out of debt!

A far better option is to consider entering into an IVA (Individual Voluntary Arrangement). This is a legally binding deal lasting five years that’s brokered by a licensed Insolvency Practitioner who puts forward a single repayment proposal to all your creditors.  Within 24 hours the Insolvency Practitioner will make contact with your creditors and at that point they are bound legally not to hound you any further.   The insolvency Practitioner will make an offer to your creditors of somewhere between 30%-50% of what you owe them and in most cases interest is dramatically reduced or even frozen.   Your creditors then vote to decide whether to accept the proposed IVA or not.  If 75% (that’s by value of the debt you owe them – not ¾ of all the people you owe money to) of your creditors do accept it, then it’s binding on everyone, even those who didn’t vote or voted against it.

Because the usual minimum level of acceptable monthly repayment for an IVA is £300.00, it’s really only suitable for larger debt cases (i.e. if you owe more than £20,000.00) to at least three creditors.  If you are a homeowner with a level of equity in your property that’s more than the total of your unsecured debts, then an IVA proposal will probably not be accepted.  Your creditors will expect you to re-mortgage or sell the property to pay off the debts in full. IVAs are also not suitable for people living on state benefits as their main or only source of income, as the level of these benefits has been set to allow solely for living expenses, and not to leave spare funds for the repayment of debts.

If you’re not in those circumstances above, and you’re  are certain you’ll  be able to make consistent payments towards an IVA from your earnings of at least £300 per month for five years, then an IVA is worth exploring.  Unlike debt management, an IVA is a “full and final” settlement which means that any debt still outstanding at the end of the IVA is permanently written off and you are free of debt.  An IVA is an affordable and workable solution to serious debt problems, and a must against bankruptcy.

Personal Debt and Protecting the Family

Personal debt (of which a substantial  amount is credit card and unsecured loans)  in the UK stood at  a staggering £1,457 billion at the end of January 2009 and someone, somewhere, is declared bankrupt or insolvent every  five minutes. These cold statistics don’t tell the full story of the real casualties of debt.

All the latest research shows that debt dramatically affects family life.  On average, 78% of people surveyed about debt worries say that being in debt affects relationships within their family and 75% say that being in debt has had a serious effect on their health.  As many as 88% say that debt worries are keeping them awake at night.   That situation is aggravated as the same surveys find that serious debt issues are typically ignored for as much as nine months before something happens which finally triggers action.  These epiphanies can include divorce, the threat of repossession or a visit from a bailiff, job loss or redundancy, or a serious health problem.

Because most people’s knowledge of how to deal with a serious debt problem is virtually non-existent, when they do decide to go for help, most simply don’t know where to turn.  Many look to the Citizen’s Advice Bureau, but this government funded, volunteer-staffed, organisation is overloaded given the depth of the current credit crisis. Its advisers are dealing with more than 7,000 new debt problems every day. So, who can you turn to?

Families in debt desperately need timely, honest, straightforward, advice. There are some less than reputable companies in market offering questionable advice with their own commercial gain uppermost in their minds.  Guardian Financial Group and it’s sister company Credit issues  have  been in the vanguard of preaching and practicing the very highest professional standards,  regulated  as they are by the Ministry of Justice and using  their own, highly qualified, in-house legal team to ensure success.

In most cases there are relatively straightforward solutions to serious debt problems.   If the debt that’s causing concern is on credit cards or unsecured loans that were taken out before 6th April 2007, it may even be possible to have the amount totally written off!   Credit Issues recently challenged a client’s credit card balance of over £16,000 due to inaccuracies in the lending institution’s administration procedure. The debt had been sold to a debt recovery agency after the client fell behind with his credit card payments. After examining the agreement Credit Issues was successful in removing the client’s liability to the debt and was able to clear the entire balance of £16,029.50.  In the first three months of 2009, Credit Issues has challenged well over a £1 million worth of consumer debt and is experiencing unparalleled demand for its full on-site specialist legal team.

Other solutions may be as simple as writing to your creditors, using debt management or IVAs, debt consolidation or even bankruptcy.  There is always an answer that can return family life back to normal.  Putting unsecured debts into a debt management programme for example can free up income and allow you start regaining control of your debts.  The increasingly popular IVA route will leave you ‘debt free’ after 60 months and a  similar arrangement, called a Protected Trust Deed, is available in Scotland.

You just need to know which is the best solution for you and be assured that the advice you are being given is correct, professional and effective.  So don’t “ostrich” yourself and choose to address your debt worries sooner rather than later.  With a comprehensive plan in place and light at the end of the tunnel you’ll be able to get back to a normal and happier family life, free from worry and stress.

Rental Repossessions On The Rise

It’s not just homeowners and those with a mortgage that are feeling the crunch in the current economic climate! Tenants too are facing difficulties, either through circumstances that mean they can’t find enough money for the rent each month or they face the prospect of eviction because their landlords can’t pay their mortgage.

For those tenants in difficulties because they cannot meet rental payments, Guardian is currently working with letting agents to get in early with help.   Often it’s the mounting burden of accumulated, unsecured debt or changes to income levels and employment that can lead tenants into a position where they may face eviction.   Putting unsecured debts into a debt management programme can free up income to enable the tenant to pay the rent and avoid losing their home.

However, a Debt Management Programme is not a long term solution.  It does provide some breathing space to allow you start regaining  control by prioritising household bills first (rent, gas, electricity, council tax)  and offering  sustainable but reduced payments to your unsecured creditors (personal loans, credit cards, HP agreements).

This can be achieved through an IVA - essentially a formal agreement with your creditors that will last for 60 months.  Guardian can arrange a meeting with your creditors (at which you need not be present) to discuss affordable proposals, which when agreed means that interest and debt charges are frozen.  The IVA must be supervised by an Insolvency Practitioner and the agreed payment is legally binding. Upon completion of the IVA you will be considered ‘debt free’, and although you may not have actually paid off all your debts, any outstanding balances are written off.

A similar arrangement, called a Protected Trust Deed, is available for tenants north of the border.  Under Scottish law, if you do qualify, you could write off up to 90% of your debt and pay the remainder in 36 affordable monthly instalments. It’s similar to an IVA as it too must be supervised by a licensed Insolvency Practitioner who is responsible for negotiations with your creditors and ensuring you keep to the terms of the Trust Deed.

Even for tenants who have consistently made rental payments, many have had to move house following repossession notices.  In many cases, the first any sitting tenant or tenant about to move into a property knows about the situation is when they find bailiffs in their home or that the locks have been changed.

The Civil Protection Rules are changing to give tenants slightly more rights in these circumstances.  Mortgage lenders intending to repossess will now have to send notice to tenants within five days of receiving notification of a court hearing date (which is often several weeks ahead) rather than being informed 14 days before the actual hearing date itself as is currently the case.  Practically speaking, that should mean that tenants ought to get around three – seven week’s notice of a possession hearing.  But that could depend on what type of mortgage your landlord has.  If it’s not a buy-to-let mortgage, the tenant could still not get any notice of possession at all.

Best practice is to always open mail addressed ‘To the Occupier’, as this may include notice of any possession hearings.  Make sure your landlord has permission from their lender to rent the property out, otherwise the lender does not have to recognise the tenancy at all.  Try to find out as much you can about your prospective landlord and their mortgage status before taking up a tenancy and if things do go pear shaped, but you were already living in the premises when the mortgage was taken out, the landlord’s lender may take you on as a tenant and allow you to pay rent to them directly.

New appointment at Guardian Debt Management

The Guardian group of companies continues to expand at a rapid rate creating a lot of exciting opportunities for our business partners. Following a detailed strategic review, and in support of our plans to make Guardian debt management a leader in the market place, we are delighted to announce the appointment of David McCann as Managing Director.

David has been given the specific task of developing this part of the business and he brings experience in both debt management and broker service to the company.

We will be announcing some exciting initiatives over the next few weeks which we intend to launch shortly.

Kind regards

Gary Forrest

Casemaster - system update

Casemaster - Important Notice

Our Casemaster system will be having some important updates carried out this weekend.  Therefore the system will not be available on Sunday 28th September 19:00 - Monday 29th September 04:00.

Regards

IT

New Letter Pack - Now Available

We have uploaded, to the Credit Issues AR downloads section, a new letter pack containing the following documents;

• Canvassing Letter
• Unable to contact letter
• Confirmation of appointment letter
• Referral letter

Your will require a program such as WINZIP to extract the files.  Once extracted the files are in Microsoft Word format, if you are not running the latest version of Word you may wish to visit the Microsoft website and download a free patch.

Regards

Andrew

Guardian - Mortgage Strategy

Press Release to Mortgage Strategy - 11th September 2008

Guardian continues to grow

The continued success of Guardian Debt Management is proving a vital lifeline for many mortgage brokers. Commitment to its broker distribution channel has seen Guardian train in excess of 1500 mortgage brokers, providing an alternative income stream in these critical times.

Gary Forrest, Chairman of Guardian says, requests for access to our system increases on a daily basis, today we have in excess of 1500 registered users and the growth rate suggests 3000 by the year end. Forrest continues, brokers are looking for alternative solutions for their clients and our instant decision and processing systems enables them to consider debt management, IVAs, Full and Finanl settlement and Sale and Rent back options.

Guardian undertakes a full training programme for brokers ensuring they are confident when discussing solutions with their clients.

—ends—–

Tuesday 9th September 2008 - Andrew Hood

First a thank you to all of you who have sent emails in the last couple of days, it’s great to hear from so many of you.

Thought I would give you a quick update on the Marketing Dept and some interesting stats.  First the personal Credit Issues websites we have been setting up for our Appointed Reps.

358 - Enquiries

Top site 220 hits

WOW !  Those are some impressive figures - that’s 358 enquiries from clients you have generated and the top site out there has received over 200 hits so far.  With average commission per case being £425 those enquiries top a potential £152 150 of commission.

If you are reading this and have no idea what I am talking about then let me explain - we can provide you with your very own Credit Issues website - take a look at ours www.creditissues.co.uk, your version will contain your own details in the ‘Contact us’ section and everytime someone makes an enquiry on the ‘Take the Test’ it comes straight to your inbox in the form of an email - the only person that gets the enquiry is you!

We host the site

We manage the site

We update the site

You take the enquiries and earn the money!

And how much is this little beauty - £99+VAT.

To order call Charlotte Howes on 0191 482 7330

Well done to those of you who have been making the most of your websites - I wish you continued and ever growing success and enquiries.

Thanks for stopping by, I will update my blog again later this week - we have loads of news in the Marketing Department including the launch of our fully online Marketing Suite.

Regards

Andrew

Septembers Seminars

New dates for online seminars

3rd September 2008

09:30 - Credit Issues - for mortgage brokers and IFA’s

12:00 - Business Opportunities - open session for all

19:30 - Business Opportunities - open session for all

4th September 2008

09:30 - Credit Issues - for mortgage brokers and IFA’s

13:30 - Credit Issues - for mortgage brokers and IFA’s

19:30 - Business Opportunities - open session for all

Register for the above FREE sessions at www.guardianpresentation.co.uk

How do the seminars work?

Simple, all you need is a computer and internet connection. You will be guided through the easy login process and join our presenter live. Sit back and relax whist you watch and listen to our presenter provide an insight to our business, you will also have the opportunity to interact and ask questions.

We look forward to seeing you there.

BDS Mortgage Group - Mortgage Strategy article

The last set of brokers were trained in all aspects of credit management including identifying solutions and training on Guardian’s unique instant decision system, Casemaster.

Brokers were invited to attend the free sessions during June, July and August and BDS says there is an appetite for the service.

Guardian’s range of credit management services includes debt management, involuntary arrangements, full and final settlements and sales-and-rent-back schemes.

Bob Hope, sales and marketing director at BDS, says: “We are actively working with our AR’s to open up new opportunities to recoup income.

“We have a waiting list of brokers for future training dates and I am confident that Guardian’s experience in the mortgage market gives them the best understanding of both broker and clients needs.”

Gary Forrest, chairman of Guardian, says: “It gives us great pleasure to support BDS and their network members.

“Guardian has worked hard to produce a suite of products and solutions that can turn a mortgage case from decline to accept.”

Latest Seminars

New dates for online seminars

26th August 2008

09:30 - Credit Issues - for mortgage brokers and IFA’s

13:30 - Credit Issues - for mortgage brokers and IFA’s

19:30 - Business Opportunities - open session for all

28th August 2008

09:30 - Credit Issues - for mortgage brokers and IFA’s

11:00 - Business Opportunities - open session for all

19:30 - Business Opportunities - open session for all

Register for the above FREE sessions at www.guardianpresentation.co.uk

How do the seminars work?

Simple, all you need is a computer and internet connection.  You will be guided through the easy login process and join our presenter live.  Sit back and relax whist you watch and listen to our presenter provide an insight to our business, you will also have the opportunity to interact and ask questions.

We look forward to seeing you there.

Join us for a coffee and free online seminar

Put the kettle on, make a fresh cup, turn on the computer, log in to our free seminar, sit back and relax whilst we show you how to change your career or even add a little extra income to your bank account each month.

Do you need to be working in financial services already?  No, we have packages available for all.

Does the seminar cost me anything?  No it’s totally free and best of all your don’t have to jump in your car and drive for miles to a meeting - so you are even doing something for your carbon footprint too!

What will I see on the seminar? Lots! We will show you some amazing business opportunities with the Guardian Financial Management (Group) and our sister company, Credit Issues - it will knock your socks off.

Are the seminars pre-recorded?  No, we host these live.  You will see a live presenter on screen and also have the opportunity to talk and ask questions directly to them.

How do I find out more?  Log into our dedicated training site at https://guardianfg.webex.com

Look forward to seeing you there!

FSA warn of financial downturn

On Saturday the Financial Services Authority (FSA) warned of the real possibility of a financial downturn, similar to that of the 1990’s recession.

The availability of mortgage products has also fallen to one of the lowest levels in recent years, many lenders reducing loan to values, tightening lending criteria and some having withdrawn from the market altogether.

Many borrowers preferential rates will be coming to an end later this year, it is widely believed that thousands of customers who took 5 year fixed rates in 2003/4 will be facing a sharp rise in interest rates when their current deals come to an end later this year, with some facing mortgage payments increasing by as much as 75%.

Combine this with increased living expenses such as food, utility, fuel and council tax and the average household will be looking at ways to cut back or restructure their financial commitments.

Now, more than ever, it is important to be able to offer the client a choice of solutions. Guardian, with its wealth of experience in the financial sector, has created a comprehensive toolbox of products, providing you with solutions to meet your clients individual requirements.

Where as a remortgage might have been an easy solution this may today be either inappropriate or indeed totally unavailable for the client, Guardian’s solutions can instantly ease the financial pressure that client may be facing, as well as providing a longer term solution and financial stability.

Are you a mortgage broker or IFA?

Maybe you are seeking a career in Credit Management?

Guardian’s broker and Appointed Representative programmes offer an excellent opportunity to increase your client offering or even a complete new career. Join us for an online seminar, totally free and available from the comfort of your own home or office. We will take you through the products and solutions, including a substantial earning potential.

Register today by:

logging onto www.thisisthebiz.co.uk

Calling: 0191 482 7330

Email: info@guardianfg.com

We look forward to seeing you there.

Credit Issues - New Marketing Material Released

Credit Issues Marketing Material now available!!

We currently have these stunning new designs available in the following formats:

ü A5 full-colour leaflet

ü A6 full colour postcard

Kick start your Credit Issues marketing today and order your personalised leaflets or postcards by calling Charlotte Howes on 0191 482 7330

Lots of Appointed Representatives are looking for that perfect domain name to promote their business, we have a simple tool here that lets you search for that perfect addition to your business.

@import url(http://www.123-reg.co.uk/banners/bannerstyles.css);

Search for a domain name

Powered by 123-reg.co.uk

Join our growing team

Great News!

Demand to join our unique Appointed Representative Programme is at an all time high. Why? Well have a look at some of the benefits;

Full and comprehensive training course

Guardian business cards

Your own consumer website

Personal Guardian email address

Access to our telesales unit who provide pre-qualified leads for you

In-field support

Casemaster - our online case management and diary system

Regular meetings with senior management

Access to our sister company - Credit Issues Limited - see www.creditissuesltd.co.uk

Looking for more details? Join our FREE online presentations on

Tuesday 29th July 2008 - 10am

Tuesday 29th July 2008 - 2pm

Wednesday 30th July 2008 - 10am

Wednesday 30th July 2008 - 12pm

Friday 1st August 2008 - 10am

Friday 1st August 2008 - 2pm

REGISTER - by calling Charlotte Howes on 0191 482 7330 or email us at info@guardianfg.com

More dates….

Wow is all I can say, the online seminars are getting fully booked within hours of announcing them. So here are some more:

Monday 7th July 2008

17:00

19:00

Wednesday 9th July 2008

15:45

How do you join?

Simple - visit our site at https://guardianfg.webex.com, select the ‘Business Opportunites’ seminar and click REGISTER.

After registration you will receive an email giving you instructions on how to join the session.

Then all you need to do is sit back with coffee in hand, login at the right time and watch/listen to an opportunity that will have you sitting on the edge of your seat.  And best of all, the online seminar is FREE.

Look forward to seeing you there.

You better sit down and read this !

Well those were pretty much the words of our Chairman, Gary Forrest, when he told us about our new partnership with Credit Issues Limited.

Doesn’t sound very exciting yet I can hear you say…..well…….

Credit Issues can write off the balance on most credit cards and unsecured loans, totally write them off. Clear the whole balance just as if they didn’t exist.

Sound too amazing to be true, then attend one of our online seminars at https://guardianfg.webex.com and prepare to be amazed, totally amazed.

See you there.

New Business Opportunity- Free online seminar

Guardian are pleased to announce an exciting new business opportunity. Whether you are seeking an additional income or a complete new career then this is for you. Attend one of our free, online seminars. Sit in the comfort of your own home or office and login to our free seminar.

Dates:

Wednesday 2nd July 2008 - 11:00

Wednesday 2nd July 2008 - 16:00

Thursday 3rd July 2008 - 09:00

Thursday 3rd July 2008 - 19:00

Venue: https://guardianfg.webex.com

Session Name: AR Introduction to Guardian

Session Password: guardian

For further information please contact Charlotte Howes, Marketing Manager on 0191 482 7330.

We look forward to seeing you there.

Free, free, free !

Free Online Seminars - New Date

Sit back and relax in the comfort of your own office with coffee in hand and enjoy our free online Introdution to the World of Credit Management.

Date:  Tuesday 24th June 2008

Time: 09:30 (35minutes)

Venue: Log on at https://guardianfg.webex.com

Topic:  Introduction to Credit Management, covering, Debt Management, IVA’s & Trust Deeds, Full & Final settlements, Sale & Rent back.

We have changed the fortunes of thousands of mortgage brokers, providing real long term solutions for their clients.

Can you afford not to be there ?

Have your say and vote now

Due to the amazing demand for our free online seminars we are looking to put together some new topics.  Now is the time to have your say.  We have listed below some of the topics were are looking at, so login to your BLOG account, or create a free online if yo have not already registered and comment.

1. Detailed walk through of IVA’s
2. Sale & Rent Back - How it works and your questions answered
3. Case studies - a walk through of actual cases and the solutions we have provided
4. Marketing - how to work your client bank and advertise for new business
5. Your suggestions - tell us what you would like to see

We look forward to hearing from you.