problems over debt rocket in north east

[scottishlass]

Problems over debt rocket in north-east

Borrowers urged to seek advice

Published: 21/05/2008
THE number of people in the north-east facing court action after failing to repay their debts has rocketed.
In the first three months of this year, the amount of decrees issued by Peterhead Sheriff Court has risen to nearly double the total for the whole of 2007.
The figures, released yesterday by credit reference agency Callcredit Check, reveal that Peterhead has seen the sixth biggest rise in the UK throughout the first quarter of 2008.
The Buchan port is second only to Stirling in Scotland.
The number of decrees issued at Peterhead in 2007 was 24. The number for the first quarter of 2008 is 47 – a rise of 96%.
Stirling has seen a 100% increase over the same period, with 22 issued in 2007, and 44 in the first part of this year.
Owen Roberts, head of Callcredit Check, said: “The rising cost of living and increases in mortgage rates appear to be hitting residents in Peterhead hard and this is no doubt a contributory factor to the rise.
“With a gloomy outlook being painted by many financial experts, we would advise consumers to check their credit report as a first step towards gaining a full understanding of their financial situation.”
He urged any borrowers who find their circumstances have become unmanageable to seek independent advice.
The Banff and Buchan Citizens Advice Bureau, which covers the areas in and around Peterhead, Fraserburgh, Mintlaw, Banff and Macduff, has been hand- ling just under £3.6million worth of debt throughout 2007 – about £1million more than the Scottish average.
The average client is in the red by around £13,500, which is double the standard UK amount.

[LuggerBugs]

Re: problems over debt rocket in north east

I've just spent the past half hour toning down a letter to the editor. And here it is. Hopefully it will open up a bit of interest here in Scotland. IF they have the courage to print it, that is...

Sir,

It comes as no surprise to me that the number of decrees issued by Peterhead Sherriff Court has risen so massively in such a short space of time. Financial institutions, having bought into the sub-prime fiasco so eagerly in order to make a fast buck, are now seeking to recoup their losses by passing the buck. And it’s the consumer who is suffering because of their ineptitude.

Lenders now appear all too eager to sell on a problematic account earlier compared to this time last year. Even when a debtor has an agreement in place to repay a debt when he or she finds themselves in difficulty, often the debt is sold on anyway. Other companies have decided that lending is no longer a viable part of their business, and so people with loans or credit cards can find they have become a shiny new “customer” of a debt purchase company, despite having an impeccable credit history.

Bear in mind that the new creditor MAY have paid anything between 5 and 25 pence in the pound for a debt, it hardly seems particularly moral to find that these companies want the full amount repaid, especially considering that they charge interest on the face value of that debt. Personally speaking, I see that as Unjust Enrichment. Take into account too that very often, the new creditor has no idea what sort of interest rate had been agreed between the debtor and the original lender, but appears to “wing it” and make it up as they go along. Despite it being unlawful to charge any more than that in the original agreement.

Debt purchasers too, have been known to take liberties in their methods of debt collection. Lying, threatening, and unlawful harassment seems to be the business model of choice in many cases. And I wonder how many of those who have decrees issued against them, actually turned up in court to defend themselves? Or did they feel so intimidated by the creditor in question’s behaviour, that they just pushed their head further in the sand when the papers came through their door; the creditor winning by default. Far too many, in my opinion.

What the general public needs to understand is this: In many cases, the creditor CAN be lawfully challenged. Perhaps the debt was made up partially, and in some cases wholly, of unlawful charges or interest that is not owed in the first place? Or perhaps they have been hounded for someone else’s debt, or for a debt that is long since statute barred, the debtor having made no payments or acknowledgement of any debt for over 5 years? The reasons are myriad, but in a very large percentage of cases, if a debtor were to turn up and defend in court, there would be either no debt owed at all, or at least not the sum claimed by the creditor. Or the alleged debt might be totally unenforceable for one reason or another.

The Citizen’s Advice Bureaux can help you if you find yourself in financial difficulties, as they are well aware of the pressure some lenders and creditors can use to extract money. But CAB is severely understaffed and underfunded. So for those prepared and able to do a little work for themselves, it might be more appropriate to join one of the many online self help forum that are available, and do some research there. Most members have been through the financial mill themselves, and so there is a huge well of personal experience to draw on. Even a simple internet search for the name of the company pursuing you for payment can often bring surprising results. I cannot recommend any one forum over another, but again, a search for “Debt Forum” will point you in the right direction.

It’s time to take your head out of the sand, folks. The financial institutions have had it all their own way for far too long. Start fighting back. Don’t become yet another statistic in the Decree Register, just because you have been too afraid or ashamed to make a stand. If you don’t owe it, and in a substantial amount of cases you don’t, why should you pay it?

Iain Smith
“Rogue Debtor”

[scottishlass]

Re: problems over debt rocket in north east

I do hope so Lugger, very good letter by the way:tinysmile_grin_t:

[Sapphire]

Re: problems over debt rocket in north east

Great letter Lugger lets hope it gets published.