The Chartered Institute of Credit Management (CICM) is the world’s largest recognised professional body for the credit management community. As well as facilitating professional qualifications, the Institute’s members have access to a host of resources. For example, their “Knowledge Hub” covers such subjects as “credit risk” and “legal and compliance”, as well as “skills builder”.
The basic rule of jurisdiction is that an individual should be sued in the court where they reside, as opposed to the court where a pursuing creditor carries on business. The rationale for this is to protect “consumers” who are seen to be the commercially weaker party in the relationship.
In ancient Greek folklore a phoenix was a bird which cyclically regenerated or was otherwise reborn again. It’s a nice idea and most of you will be forgiven for thinking that the phenomenon could never happen. However, if we substitute for a “bird” a “limited company” then the concept is almost one of legal abuse.
Many English solicitors are mystified with Scotland’s procedures for the recovery of undisputed debt. This should not be the case. Like our English cousins, ultimately the process involves disposing of a debtor’s moveable property for auction and sale or to put it more prosaically “to convert the court’s judgement into cash”.
On 19 November 2019, Stephen Cowan presented a CPD webinar with The Sheriffs Office on the topic of cross-border enforcement between England & Wales and Scotland.
MMP Financial, trading as "My Money Partner" and "Swift Sterling", has gone into administration. Both businesses offered loans of up to £1,500 over periods ranging from two to seven months, with the entire process being completed online. "Piggybank" another short term lender, collapsed 24 hours prior to MMP Financial’s administration, leaving their 45,000 customers in a state of financial uncertainty. Piggybank offered loans of up to £1,000 to new customers for up to five months. Interest due on the borrowing would typically equate to an annual percentage rate (APR) of between 1,255% and 1,698%. In addition, in 2019 Wonga and Instant Cash Loans also collapsed.
The Times has reported that some of Britain’s largest retail stores are plunging shoppers into record levels of debt. The paper accuses the stores of allowing many shoppers easy access to credit facilities which charge up to 30% of interest on outstanding balances.
Citizens Advice Scotland have reported that debtors with combined arrears of £6.4 million of council tax debt problems have approached them. This represents arrears for 2018/19 with the level of individual indebtedness averaging £1,900 out of a total of 3,999 people seeking advice.
A Scottish Trust Deed is similar to bankruptcy but perhaps without all the bells and whistles. Once the debtor enters into a Protected Trust Deed (PTD) he is committed to an agreed payment schedule. Ultimately, creditors will receive a small percentage dividend although this can often be lower than what they will receive if the debtor had been made bankrupt.
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