Limitation period
The time limit within which a creditor can take legal action to recover a debt. In England and Wales, for most consumer debts, this is 6 years from the date of default or last acknowledgment of the debt. Take advice before making any payment on old debts.
Professional negligence
A legal claim against a professional (such as a solicitor) who has failed in their duty of care, causing you financial loss. May be relevant if your solicitor failed to disclose a referral relationship with your funder, did not advise you on lower-cost alternatives, or misrepresented the likely terms of the loan.
Financial Ombudsman Service (FOS)
A free, independent UK service that investigates complaints about financial services companies. If you believe a lender has treated you unfairly and your formal complaint has not been resolved satisfactorily, you can escalate to the FOS. Their decisions are binding on the financial firm.
Debt Management Plan (DMP)
An informal agreement — usually arranged through a debt charity such as StepChange or National Debtline — where you make a single monthly payment which is then distributed to your creditors. Not legally binding, but creditors often agree to freeze interest and charges.
IVA (Individual Voluntary Arrangement)
A formal, legally binding agreement between you and your creditors to repay what you owe over a fixed period (typically 5–6 years), usually at a reduced amount. An IVA is administered by a licensed Insolvency Practitioner and affects your credit file. An alternative to bankruptcy.
Charging order
A legal mechanism allowing a creditor who has obtained a CCJ to secure the debt against property you own. It does not mean immediate repossession — it means the debt may be recovered when the property is sold.
CCJ (County Court Judgement)
A court order issued in England and Wales requiring someone to repay money owed to a creditor. A CCJ appears on your credit file for 6 years and can affect your ability to get credit, rent property, or obtain a mortgage. You have the right to respond to a claim before a CCJ is entered.