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The CAB building in Tonbridge
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Tonbridge & Malling CAB Advice Column
Tonbridge & Malling CAB publishes a regular advice column in the local press which are also given below. These often
answer some of our most frequently asked questions.
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HOMEOWNERS MORTGAGE SUPPORT - Published 15/5/2009
My husband has recently lost his job and we are worried about how we are going
to be able to pay our mortgage. I have heard that there is a new government scheme
that may be able to help us. Can you tell me more about it ?
The government launched Homeowners Mortgage Support (HMS) on 21 April.
The scheme is designed to help borrowers who have suffered a temporary loss
of household income. If your mortgage lender takes part in the scheme,
it can allow you to delay some of your monthly mortgage payments for up to two years.
The scheme is not a payment holiday - you will still have to pay the money back at a
later date and you will have to pay interest on the money owed. However, the scheme
may give you enough time to improve your finances without the worry of losing your home.
You will need to meet a number of criteria in order to be eligible for the scheme, including:
· having savings of less than £16,000;
· having less than £400,000 outstanding on your mortgage and any other loans secured against your home.
Your mortgage lender will decide whether or not you are suitable to join the scheme and
will expect you to have obtained debt advice from an accredited advice agency such as
Citizens Advice in order to explore your options in full.
CHANGING MOBILE PHONE COMPANIES - Published 8/5/2009
I have been on a fixed-monthly contract with a mobile phone provider for two years,
but I now want to change companies but still keep my old phone number.
I have rung my original provider, but they keep making excuses for why they can't help. What can I do?
Firstly, check your contract for details of when you can leave and how much
notice you have to give - normally this is one month. You can be charged for
ending your contract early, but not more than the remaining amount you would
have paid under the contract.
In order to switch companies, your original phone company is required to
supply you with your PAC (Porting Authorisation Code). You should ideally request
this in writing but you can ask for it by phone, or in person. All phone companies
are required to give this to you within two working days of your request. Do not
cancel your direct debit until you have written confirmation of the termination
of the contract, as you may still be liable for your bill. Once you have your
PAC, and confirmation of termination of contract, you can ring the new company
and switch services.
If your mobile phone company does not comply with your request, you should
speak to them about it first. If you have made a formal complaint to the phone
company and this hasn't solved the problem, you can try using the company's
Alternative Dispute Resolution (ADR) scheme. All phone companies are required
to have an ADR scheme.
DEPOSIT SCHEME - Published 24/4/2009
I am looking at flats to rent privately and all of the landlords are asking for a deposit.
I have heard that there is a scheme to protect security deposits. How does this work ?
From 6 April 2007, a landlord (or a letting agency acting on a landlord's behalf)
must use a tenancy deposit protection scheme if s/he wishes to take a security
deposit for an assured shorthold tenancy agreement.
A tenancy deposit protection scheme is a scheme that safeguards the deposit,
so that a tenant is guaranteed to get it back at the end of the tenancy, provided
s/he is entitled to it. It also provides an alternative dispute resolution service
to sort out any disagreements between the landlord and tenant about the deposit
at the end of the tenancy.
There are three authorised tenancy deposit protection schemes. One is a custodial
scheme and the other two are insurance-based schemes. The landlord can join either
scheme and should inform the tenant within 14 days which scheme they are using.
In the custodial scheme, which is free to both landlords and tenants, the landlord
pays the deposit into the scheme. The deposit is held in an account administered
by the scheme and will earn interest. This scheme is more likely to be used by
small landlords as there are no costs involved.
In an insurance-based scheme, the landlord keeps the deposit, but has to pay
registration and insurance fees to the scheme. The scheme guarantees payment
to the tenant if the landlord does not pay the tenant the amount s/he is
entitled to at the end of the tenancy.
DEBT RELIEF ORDERS - Published 3/4/2009
I have about £10,000 of credit card debts and am on a very low income.
I have been thinking about going bankrupt but I have heard that there
is soon going to be a cheaper way of doing this. Can you tell me more about this ?
The Insolvency Service is introducing a new type of insolvency procedure called the
Debt Relief Order (DRO) on 6 April.
It is aimed at those with no income and no assets.
To qualify for a DRO a client must have:
· debts of under £15,000
· available income of under £50 a month, after the deduction of normal expenses
· assets of under £300 (not including a car, which can be worth up to £1,000).
A DRO is similar to bankruptcy but, unlike bankruptcy,
can only be applied for through an approved intermediary who will help
the client with the online application and check that the client is
eligible for a DRO. The intermediary will be an experienced money adviser
approved by a competent authority such as Citizens Advice.
A DRO costs £90, which can be paid in instalments. It will last for one year and,
at the end of that period, the client will be free of the debts listed in the order.
Some debts, for example, student loans, cannot be covered by a DRO.
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