TV Review: War on Loan Sharks
This week, the BBC aired a documentary called "The War on Loan Sharks" which followed the day-to-day of the Illegal Money Lending Team (ILMT) and their investigations into loan sharking around Weston-super-Mare. There are 310,000 families that have turned to loan sharks in the UK and this is illegal side of lending is said to be worth around £400 million per year. The show looked at both sides of the
Read MoreUK Household Unsecured Debt Reaches £13,000
Research by the TUC yesterday announced that UK households now have an average unsecured debt of £12,887, the highest it has been since December 2008. Being 'unsecured,' this refers to loans and types of credit where no security or collateral is required, making reference to credit cards, personal loans, finance for new cars and excludes account mortgages (as this is secured on your property). The BBC explained that unsecured debt
Read MoreWhy didn’t I get the interest rate advertised for my loan?
Every year, borrowers are left scratching their heads as to why they may not have received the rate advertised. After all, if I have a strong credit score, good employment and homeowner status, surely this should give me the lowest rates? For many consumers it comes as a real surprise when they receive their 'SECCI' or loan agreement and see that it is not the rate on the website or
Read MoreMSE Creates Soft Search Loan Application
This week on the Martin Lewis Money Show, the Money Saving Expert himself spoke about getting loans during the Christmas period. Specifically, he mentioned the risks of making an application and the lender performing a 'hard search' on your credit report. A hard search footprint is a mark made by the lender and sits on your credit file for at least 12 months and is a way of saying that
Read MoreFCA working on the enforcement of guarantor repayments
In October 2016, the Financial Conduct Authority opened a consultation dealing with how guarantor lenders can reinforce repayments for guarantor loans. Specifically, this deals with the person that guarantees the loan, usually a family member, spouse or close friend who the borrower knows, trusts and agrees contractually to repay the loan if the main borrower defaults. The issue is whether guarantors can be treated in the same way as borrowers
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