No law against it. No one forces you to borrow. I agree that maybe there should be a set limit as per gross annual salary but your debts are your debts unfortunately.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I was listening about this on the radio the other day, their is no laws as such, only guidelines, i belive it or not a law cam in recently telling banks how to lend money for a mortgage, but was recently either this year or a couple of years ago.
On the radio it did say that a "goverment body" was looking in to this to pass some laws on lending money so you dont get in to the situation were some one borrow money and can not pay it back.
On the radio some one was been interviewed who worked for a sub prme mortgage company who were offered bonus daily form a bottle of wine to a holiday to sell loans irrespective if the person could pay it back, then the same company would set up another company in another name and offer you help with a DMP.
The only relevant legislation would fall under the Unfair Contracts TermsAct 1977 or Extortionate Credit Transactions provisions of the Insolvency Act 1986 - both of which are pretty hard to prove to be honest.
