Debt Reduction Programme

If you are struggling with your debts, you may be able to reduce the amount you owe through litigation and reduce your monthly payments to a manageable amount.  If you answer "Yes" to all four, you may qualify for this Debt Reduction Programme.

Is your monthly expenditure greater than your monthly income?
If you are struggling with your finances, do you want help?
Do you have over £4,000 in unsecured debt with at least two lenders?
Are you in gainful employment?*

*If you are unemployed, disabled, sick or otherwise unable to work or find work, please refer to the Financial Hardship Section below.

Financial Hardship

If you are suffering severe financial difficulties as a result of unemployment, illness, disability, paternity absence or any other change in circumstances which has resulted in you having less income than expenditure, your Bank may be obliged to consider your complaint before the OFT Test Case is concluded.

The FSA and the Banking Code allow for people in financial difficulties to have their claims processed quickly under the Financial Hardship Rules.  In most cases where the client is assessed by our team as qualifying under the Financial Hardship Rules, we are able to secure an offer to refund charges form your Bank. 

Most Banks consider complaints carefully from clients in difficult financial situations, and require information about the client's personal financial circumstances, including details of income and expenditure.  As part of this process, you may be required to complete a Common Financial Statement.

The FSA clarified the meaning of the Financial Hardship Rules recently.  In general,  Financial Hardship is defined as when a client's income is insufficient to cover reasonable living expenses and afford necessary financial commitments such as utilities, rent and council tax or those struggling to repay debts such as mortgage arrears or heavy credit card debts.  In short, your income must be less than your expenditure.

There are many reasons why people find themselves in financial difficulties, although the FSA outlined circumstances and events that lead to, or indicate a client is in financial difficulty, such as unemployment, illness and becoming a care.  In making an assessment of Financial Hardship the firm will take into account:

1.  Evidence of changes in lifestyle, including:

Loss of employment
Disability
Serious illness
Imprisonment
Relationship breakdown
Death or illness of a partner
Starting a lower paid job or reduced hours
Maternity/Parental leave
Carer leave
Starting full-time education
 

2.  Evidence of the following events:

Items are repeatedly being returned unpaid due to lack of available funds
You are failing to make loan repayments or other commitments
Your regular income has stopped or been reduced
You have been notified of some form of insolvency or court proceedings
You regularly request increased borrowing or repeated rescheduling of debts
You make frequent cash withdrawals on a credit card at a non-promotional rate of interest
You repeatedly exceed a credit card or overdraft limit without agreement
 

If you any of the above apply to you, you may qualify under the Financial Hardship Rules.  We will work with you to submit the Common Financial Statement and other information requested by your Bank.  Your Bank may wish to discuss your finances and debt, and recommend solutions. 

We are unable to advise you on your Debts, although we provide our clients access to specialist Debt Advice through a Debt Management Company.  If you are more than £5,000 in debt and are struggling to make your payments, your may be able to restructure your debt and reduce your monthly payments by discussing your option with a Debt Management Company.

If you are suffering severe financial difficulties, please contact our Claims Advisors for further information about claiming under the Financial Hardship Rules. 

Telephone:     0800 011 25106
FAX: 0207 681 1206
Email:             info@victoryclaims.co.uk