Banks, Building Societies and their customers have been waiting for a long time for a final decision on whether overdraft charges can be imposed. The Supreme Court finally gave its decision in November 2009. The decision was confined to a particular point of law. The decision was that the Court cannot rule that overdraft charges generally are unfair. However it appears that there is nothing to prevent a Court looking into a particular transaction between Bank and customer to decide whether or not that particular transaction and the charges imposed, are unfair.

Charles Fox

An alternative to bankruptcy for an individual who is insolvent.

Introduction

New Legislation was introduced from 06 April 2009 to provide a further alternative to bankruptcy for an individual who is insolvent and cannot pay their debts and provides for a Debt Relief Order (DRO).

The introduction of DROs is intended to minimise the cost of dealing with your insolvent financial affairs and allow you to obtain relief from them. Bankruptcy can cost in excess of £500.

Qualifying for a DRO There are a number of requirements that you must meet before you qualify to apply for a DRO:

• You must be unable to pay your debts
• Your total debts must not be more than £15,000.
This does not include unliquidated debts (debts where the amount due is not yet known) or debts that cannot be included in a DRO (such as Student Loans, Fines etc.)
• Your total assets must not be more than £300.
It is important to note here that the £300 relates to the total value of your assets before charges such as a mortgage. In other words if you have a house with a mortgage (even if it is in negative equity) you will not qualify for a DRO.
• Your disposable income after deducting all normal living expenses, must not be more than £50 per month
• You must be living in England or Wales, or at any time during the last 3 years have been resident or carrying on business in England or Wales.
• You must not have been subject to a DRO within the last 6 years.
• You must not be involved in any other formal insolvency procedure at the time of the application for a DRO e.g. already be bankrupt or subject to an IVA.
• If you have presented your own petition for bankruptcy the court must have referred you to the DRO procedure.
• If you have been notified that a creditor has presented a bankruptcy petition against you, then you must get that creditor’s permission to apply for a DRO.


How to obtain a DRO
Providing you meet the criteria, the procedure for obtaining a DRO is relatively simple:

• The application can only be made on-line with the assistance of an approved intermediary (details of these are given below)
• A fee of £90 must be paid (compared to £500 or so for a bankruptcy) to the Official Receiver; and
• The Official Receiver then assesses the on-line application and if appropriate makes the DRO.


How does a DRO affect you?
When a DRO is made the effect of this is:

• It provides you with protection from enforcement action by your creditors, i.e. they cannot pursue you any more for their debt; • The DRO normally lasts for up to 12 months and after that period the debts are written off; • It imposes certain restrictions (very similar to bankruptcy) on you. The main restrictions are not being able to obtain credit of more than £500 without saying you have a DRO, and you cannot be a director of a limited company or be involved in the promotion, formation or management of a limited company. • There are some other restrictions not detailed here.

A DRO is very similar to bankruptcy and virtually all the restrictions placed on you are the same.

It is important to note that a DRO is a very good solution for someone with relatively uncomplicated financial affairs. The Official Receiver will not generally investigate your affairs but is able to do so if he suspects you have not made a full disclosure in your application or if a creditor makes a complaint about you obtaining a DRO.

A DRO should therefore not be considered as an 'easy way out' of dealing with your financial affairs. It is there to assist someone who would normally have gone down the bankruptcy route, but has a relatively low level of debts and assets and cannot afford the costs of their own bankruptcy petition. If you are found to have been 'less than honest' then rather than lasting for 12 months, a DRO can be extended (together with all of its restrictions on you) for up to 15 years depending on how serious it is!

Approved intermediaries
The following authorities are charities which can put you in touch with an approved intermediary:

Citizens Advice Bureau
Myddelton House
115-123 Pentonville Road
London
N1 9LZ


Telephone: 0207 833 2181
Website: www.Citizensadvice.org.uk

National Debtline
Tricorn House
51-53 Hagley Road
Edgbaston
Birmingham
B16 8TP


Telephone: 0121 410 6247
Website: www.nationaldebtline.co.uk/england_wales/

Consumer Credit Counselling Service
Wade House
Merrion Centre
Leeds
LS2 8NG

Telephone: 0800 138 1111 (Mon-Fri 8am-8pm)
Website: www.cccs.co.uk

Source
DSi Services
www.dsiservices.co.uk

As from the 2nd April 2007 all employers, employees, customers and visitors will no longer be permitted to smoke within any workplace or premises open to the public if those premises are enclosed or substantially enclosed. This also applies to work vehicles.

Every business must display designated no smoking signs as appropriate.

Local Authorities enforced the Regulations. There are fines for both individuals and Managers who smoke or allow people to smoke in restricted areas.

The deposits taken for any Assured Shorthold Tenancy created after the 6th April 2007 will be protected by new Rules. Rules also relate to new Assured Shorthold Tenancy Agreements between an existing landlord and tenant.

The aim of the new Rules is to ensure that tenants who are entitled to the return of all or part of their deposit, will get it back at the end of the tenancy without difficulties which have occurred to date.

Landlords can chose between two schemes, the custodial scheme or the insurance based scheme.

Under the custodial scheme, deposits are passed on to a third party who will hold the deposit if there is a dispute about whether it should be returned in part or in full, until the dispute is settled by Court proceedings or dispute resolution.

In the insurance based scheme, the landlord pays a premium to an insurer and the tenant must be notified. If at the end of the tenancy there is a dispute about the return of all or part of the deposit, the landlord would be required to pay the amount of the deposit to a third party pending resolution of the claim by dispute resolution. If the landlord fails to lodge the disputed amount, it will be covered by the scheme insurance.

If the landlord fails to use either of these schemes, they will not be able to obtain possession by giving two months notice as normal, or the tenant can apply to the Court which can order the landlord to comply with the schemes or to return the deposit and as a deterrent, the Court must order the landlord to pay the tenant three times the amount of the deposit.

These schemes cannot be contracted out of.