MoneySolve Hits Out at Extortionate Missed Payment Penalties

MANCHESTER, England, March 15 /PRNewswire/ -- Debt advice experts at MoneySolve have condemned the extortionate missed payment penalties and excessive rates of interest applied to some unsecured loans and credit cards.

The debt specialists believe that these charges make a bad situation worse for the most financially vulnerable consumers, noting that:

"If someone misses a payment, there's a real possibility that this individual is someone who is struggling to make ends meet. Where, then, is the sense in applying interest and charges to such accounts, increasing the size of the overall debt when the person in debt can't make their payments on time anyway? It adds to the stress of the situation for the consumer, it makes the financial load even heavier and is hugely unfair."

MoneySolve provides free and confidential advice and can offer people in need a full range of debt solutions. The experts at money solve can help debtors whose accounts are currently accruing such charges by providing debt management solutions and if applicable advise on the availability of an IVA as a means of solving the debtor's financial problems.

"Often, debt solutions, such as the IVA or debt management, will involve us getting all bank charges and extortionate interest stopped where possible. In the case of an approved IVA the debtor is guaranteed that the interest and charges are frozen. This comes as a relief to our clients who will notice that the debt is not increasing in size."

The debt advisors hope to see penalty charges reduced across cards and loans, commenting that:

"Of course creditors want to recover their debts. We do understand that. But we fail to see how adding extortionate interest and charges to the account will help to achieve that. Surely banks should try to work with debtors more closely so that affordable repayments can be agreed sooner that give debtors some hope that the debt can be repaid within a shorter period of time thus maximising returns for the banks and minimising the anxiety and distress that debt brings to the individual debtor. "

SOURCE MoneySolve

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