Experiencing romance fraud can be devastating, both emotionally and financially. If reimbursement through the Contingent Reimbursement Model (CRM) or Payment Services Regulations (PSR) hasn’t been possible, there are several legitimate avenues in the UK to help ease financial burdens:
1. Government-Backed Debt Solutions:
- Debt Management Plans (DMPs): Informal agreements with creditors to pay off debts through affordable monthly payments. While not legally binding, they can help consolidate multiple debts into a single payment. It’s essential to use a company authorised by the Financial Conduct Authority (FCA) for setting up a DMP.
- Debt Relief Orders (DROs): Suitable for individuals with debts under £50,000, minimal spare income (less than £75/month), and who do not own a home. A DRO freezes debt repayments and interest for 12 months, after which debts may be written off if financial circumstances haven’t improved.
- Individual Voluntary Arrangements (IVAs): A formal agreement to pay creditors a portion of your debts over a set period, typically five years. At the end of this period, any remaining debt is written off.
2. Breathing Space (Debt Respite Scheme):
This government initiative offers individuals 60 days of protection from creditor action, providing time to seek advice and establish a debt solution. During this period, creditors cannot contact you, take action to make you pay, or add interest and charges to your debt.
3. No-Interest Loan Scheme (NILS):
Launched in September 2022, this government-backed pilot program offers interest-free loans ranging from £100 to £2,000 to individuals who might not qualify for traditional credit. The scheme aims to assist those struggling with debt repayment.
4. Professional Debt Advice Services:
Engaging with reputable organisations can provide personalised guidance:
- Citizens Advice: Offers free, confidential advice on debt solutions and can assist in communicating with creditors.
- StepChange Debt Charity: Provides comprehensive debt advice and can help set up DMPs, IVAs, and other solutions tailored to your situation.
Important Considerations:
- Beware of Scams: Unfortunately, some entities prey on vulnerable individuals seeking debt assistance. Ensure any debt consolidation service or advisor is authorised by the FCA.
- Impact on Credit Rating: Formal debt solutions like DROs and IVAs can affect your credit score. It’s crucial to discuss potential implications with a debt advisor before proceeding.
Taking proactive steps by seeking professional advice and exploring available support can provide a pathway to financial recovery after experiencing romance fraud.