Insolvency in the UK is something never far from the nation’s consciousness and is set to soar in 2008. Many, however, suspect that banks themselves are intrinsically linked to the debt crisis.
Irresponsible lending, hidden charges, higher lending charges and a host of factors are seen to be largely responsible for the amount of unsecured debt in the UK. Insolvency and bankruptcy is an inevitable by-product of the credit culture that has become entrenched in the psyche of the British borrower. However, a lack of financial awareness and the majority of banks' propensity of lending where perhaps they shouldn't have led to a boom in insolvency spanning the UK.
Insolvency – Ruling Due On Unfair Bank Charges
In the last year of so, there has been a massive increase in the number of customers demanding refunds from their banks for unfair charges. It is common practice for banks to charge for bouncing cheques, going overdrawn and various other indiscretions but the Office of Fair Trading state that the charges don't reflect the actual administration costs and many bank customers could be refunded as a result. Insolvency is a problem that results predominantly from poor financial management and banks are punishing those in most financial strife by charging them extra for going overdrawn amongst other things. This merely compounds the problem and the result is an increase in insolvency and those filing for bankruptcy.
Insolvency – A Profits Game
Banks are businesses too and it is not unfair of them to want to make profit. However, so far as insolvency is concerned, the endeavours to make profit are hitting those who can least afford to lose money. The result of this is that their debts will often spin out of control and more and more people will experience the misfortune of insolvency or bankruptcy in 2008. The ruling on bringing unfair bank charges is due soon and it may well be music to the ears of those with the threat of insolvency hanging over them if the ruling is to ban unfair charges by banks.
Speak To Varden Nuttall About Insolvency
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.