Close to half a million consumers will share £149 million in compensation after a number of lenders sought charges and fees that weren`t due, however, many borrowers won`t have that remedy and may need to seek debt consolidation if they are struggling to maintain commitments to their creditors.
The Office of Fair Trading (OFT) has indicated that 17 banks and building societies provided store cards, credit cards, loans and hire purchase agreements that had documentation that didn`t comply with the Consumer Credit Act (CCA).
Under the rules, they`re not allowed to benefit from interest or charges while their offerings are contrary to the CCA.
The most common mistake lenders made lenders were not providing annual statements when they were due or failing to inform customers that they were in arrears quickly enough.
The banks and building societies in question haven`t been named, but the affected customers will be contacted directly.
That`s great news for them, but for most of us, interest and charges on our borrowing won`t go away that quickly and can become something of a problem.
That`s where a debt consolidation loan can help, as you can consider taking all of your unsecured debts into one larger personal loan, if you cannot get enough that way or do not qualify for an unsecured loan you may be able to use the equity in your property for a secured homeowner loan.
Secured loans carry the same risks as mortgages so always think carefully before securing other debts against your home.
Properly managed debt consolidation can leave smaller repayments each month and as there`s only one loan to think about, it`ll be easier to keep track of.
Just bear in mind that if you borrow money over a longer period at similar or higher rates then the total amount of interest may well be greater.
For no obligation help to find a debt consolidation loan for you, visit firstchoicefinance.co.uk or call on a landline on 0800 298 3000 or use your mobile and call 0333 003 1505.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.