Video transcriptClose 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.
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