debt relief News & Analysis
2 articles
Market Mood
British Gas (CNA) Settles Prepayment Meter Scandal with £20M Payment
British Gas (CNA) has agreed to pay £20 million into a redress fund to compensate customers following an investigation into the forced fitting of prepayment meters. The regulator Ofgem also stated that British Gas will write off up to £70 million of debts for vulnerable customers. This practice, which involved breaking into customers' homes without their consent, led to the installation of 40,000 meters lacked permission between 2022 and 2023. Ofgem has now banned such installations in high-risk households, emphasizing the need for more stringent regulations.
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Debt Relief Can Drop Credit Scores by 100 Points — Understand Impact
Debt relief methods can lead to varying impacts on credit scores, with potential drops of around 100 points reported. Options include debt consolidation, debt management plans, debt settlement, and bankruptcy. While debt management plans tend to harm credit the least, bankruptcy can remain on reports for seven to ten years, significantly affecting creditworthiness. Understanding these trade-offs is crucial for individuals exploring debt relief options, particularly their long-term credit implications.
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