Tag Archives: insolvency

IPP advises agents on Flight Plus Liability as Airlines collapse by the week

Global travel credit specialists and UK market leader International Passenger Protection Ltd (IPP) have highlighted to new Flight Plus license holders that they will be liable for the financial collapse of any suppliers they sell such as Airlines, Hotels, Car Hire Companies, Rail journeys, Amusement parks, Ferries etc.

“Flight Plus presents a fresh direction in giving some form of clearer consumer protection, however we are seeing many agents still not grasping the actual liabilities they could face, no different to existing ATOL holders with agents still convinced that their ATOL covers the collapse of not only them but anything they sell”

“ATOL will only cover the collapse of anything the agent sells if the agent themselves collapses at the same time, otherwise the agent is always responsible for anything they sell which financially collapses which is part of a flight package” continued Mclean.

However IPP’s concern continued with the fact that the new ATOL certificate will only be issued to the public if they buy an ATOL holiday. “This seems to defeat the ultimate objective of an informative sale for all people purchasing travel, it’s a shame the certificate could not have gone a step further to clarify a trip not being protected so consumers can make an informed choice on their purchase and if they wish to protect or not.”

The warning comes as the 8th collapse in a matter of weeks with Air Australia leaving thousands stranded abroad, and with at least one airline collapsing each week in the last four weeks. “Collapses are not just stretching to Airlines, we have seen companies such as Sea Ferries and Hotels collapse or currently in dire financial strain” commented IPP’s Director Paul Mclean.

Protecting agents exposures can be simply covered with an annual policy covering scheduled flights and or end suppliers for very little costs per passenger. But IPP pointed out that agents should ensure they only take out insurance with Insurers whom are UK registered and members of the FSA and it would be prudent for them to check out the credentials of the Insurer providing the cover.

With the eurozone crisis, rising fuel costs and an increased tax burden, IATA forecast Europe’s airlines would lose at the best $600 million this year. The recent collapse of long established caries such as Malev and Spanair demonstrated how even governments are willing to let a state supported airline wither away. Numerous governments have shown their reluctance to continue support national carriers by seeking new investors such as Malev, LOT, SAS, TAP, and CSA Czech Airlines. This does not mean these carriers are at risk necessarily but investment from the banks is simply not there anymore which the whole industry depends on not just airlines.

Via EPR Network
More Financial press releases

Debt Free Direct Sees Mixed Results As Q1 Insolvency Figures Are Released By The Insolvency Service

The latest insolvency figures released show personal debt is continuing to rise in the UK, with Q1 of 2010 the fifth consecutive quarter to do so. Official figures declared for the first three months of 2010 saw a 17.9% increase in the number of personal insolvencies in England and Wales compared with the same period last year. Company insolvencies however were down 17.8% on the same period last year, rounding off a mixed year for the nation’s debt.

Debt Free Direct Sees Mixed Results As Q1 Insolvency Figures Are Released By The Insolvency Service

There were 35,682 personal insolvencies and 4,082 company insolvencies in the first quarter of 2010, however Derek Oakley, Insolvency Director at Debt Free Direct has warned of the trends of previous downturns; “In previous downturns the UK has experienced a double spike in formal insolvencies: the first representing the actual downturn itself and the second coming during the recovery of the downturn as under capitalised and weakened businesses struggle to cope with increased activity levels.”

The figure for company insolvencies, 4,082, equalled out at a decrease of 8.4% on the previous quarter. The figure can be converted to 1 in 120 active companies going into l formal insolvency(or 0.8%), which is a decrease f r o m the previous quarter, when the figure stood at 1 in every 114 countries (0.9%).

The official figures on insolvencies are released by The Insolvency Service and are compiled f r o m administrative records of the Department for Business, Innovation and Skills. The records show that the 35,682 personal insolvencies consisted of a variety of different types. The traditional way of dealing with unmanageable debt; Bankruptcy was at 18,256, which was down 10.7% on the same quarter last year, but up 7.3% on the previous quarter.

There were 11,782 Individual Voluntary Arrangements (IVA), up 20.1% on last year but at the lowest level since the first quarter of 2009. An IVA is a legally binding agreement between debtor and creditor in which a reduced payment plan is committed to. Introduced in 1986, the agreement typically lasts for around 5 years and the consumer has the potential to settle a portion of their debt.

Via EPR Network
More
Financial press releases

Spend Carefully over Christmas

During tough economic times with rising levels of personal insolvency, one UK website is offering consumers reliable, factual and helpful money advice.

Personal Finance weblog MoneyStand.co.uk has been providing information and opinions on personal finance since January 2008. The blog was created for UK consumers facing common financial issues wanting honest, up front information with no hidden agendas. The website will be launching a series of articles on seasonal spending this Friday to help consumers spend less over the festive season and start sensible budgeting.

According to a report released by government body The Insolvency Service at the start of November, personal insolvencies have risen by 28.8 percent in the past year. This figure consisted of consumers who had opted for bankruptcy, IVA or a Debt Relief Order to overcome their debt problems. Although the increase in individuals seeking personal insolvencies may be attributed to a rise in unemployment, MoneyStand.co.uk estimates that this figure will continue to rise during 2010 following excessive spending over the festive season.

Founder Matt Spencer said, “Along with Christmas and seasonal celebrations comes a heavy expense. Thousands of families across the United Kingdom will find themselves with obscene credit card bills during January and face the difficult question of how to pay it back and get out of debt.”

“We have seen a massive increase of personal insolvencies since the economic downturn and estimate the further financial pressure that Christmas brings will be the ‘final straw’ for many people already struggling with debt without careful budgeting. We urge consumers to spend carefully over the holiday season.”

MoneyStand.co.uk is a resource for anyone in the United Kingdom wanting to learn more about debt solutions such as IVA (Individual Voluntary Arrangements), bankruptcy, debt relief orders, debt management plans and consolidation loans. The weblog also focuses on debit and credit cards, budgeting and saving. In addition to as becoming a valuable source for information, the website offers practical advice on small changes consumers can make in their everyday life to make the most of their financial situation.

As well as providing information on debt solutions like IVAs and debt management, the authors share their own personal experiences with money, such as problems with banks and opinions on finance news.“MoneyStand is a financial hub for anyone in the United Kingdom who wants practical advice on managing finances and debt problems without the jargon.” Matt Spencer explained. “All articles are written by people with extensive knowledge on personal finance and all facts are taken from government websites so you can be sure the information is accurate and up-to-date.”

Since the beginning of the financial crisis, the website has noticed an increased amount of consumers seeking sensible financial advice in easy to comprehend terminology. During this time the website has committed to providing consumers the latest information on topical personal finance issues.

The website will be launching the new series of articles this Friday on helping people in the United Kingdom avoid overspending during the Festive Season.

For the latest news and advice on IVA, debt and insolvency visit our personal finance blog, http://www.moneystand.co.uk.

Via EPR Network
More
Financial press releases