In the space of just a few short months the term ‘credit crunch’ is in everyday use. You may already have found it harder to get credit unless you have a rock solid credit rating.
The Council’s Trading Standards service is responsible for enforcing consumer credit laws and they advise local people to follow their five step plan.
1. Incorrect information held about you by credit reference agencies may affect your chances of getting credit. Check your file by contacting the three main credit reference agencies - Equifax, Experian and Callcredit. You may find the £2 charge to check your file is well worth it!
2. Remember that local credit unions run by the local community offer a reliable and often cheaper source of cash and are accessible to everyone. Just look under ‘credit unions’ in the Yellow Pages.
3. Credit cards often charge a high rate of interest but they offer one major advantage. If you use them for purchases over £100 you get added protection if something goes wrong. If the seller goes into administration you can get your money back from the credit card company instead. If you pay off your bill in full you won’t incur any interest so you won’t pay any more than the cash price.
4. Don’t be tempted to use an unlicensed lender. These people are usually called loan sharks and that’s for good reason. Whatever you may think about the recent actions of the big banks, they won’t threaten violence against you or your family if you default. Report loan sharks free and confidentially to the Scottish Illegal Money lending Unit on 0800 074 0878.
5. If you have money worries why not seek independent advice about your debts? Many companies advertise these services but did you know that the Council provides a free and confidential debt counselling service? They can negotiate with your creditors and provide information on options such as Trust Deeds, Sequestration and the Debt Arrangement Scheme (DAS). Why not give them a call on 01389 737050.
Councillor Craig McLaughlin, spokesperson for the Corporate Services department said,
“The Government is trying to encourage more lending, and interest rates are falling. However we don’t want to return to the bad old days of irresponsible lending and no-one should take out credit that they can’t afford. However if you do decide to go ahead with a loan or a purchase on credit you should shop around to find the source of credit that suits your circumstances in terms of payment amount, frequency and overall cost. A better deal may be just around the corner.”
David McCulloch, Trading Standards Section Head added,
“The Council can’t force lenders to give you credit but we can help you to spot the pitfalls and advise you of your options. Although credit cards often get a bad press, many card holders have been very glad of their protection when companies such as MFI or Zoom went into administration. We would however strongly advise consumers to use them sensibly and avoid building up ever-increasing balances which can’t be repaid.”
For free consumer advice call Consumer Direct Scotland on 08454 04 05 06. Or call into the Trading Standards office at the Council Offices in Clydebank and pick up a leaflet or speak to a consumer advisor.
