VATFIN3245 - Credit, debts and related services: debts and related services: debt consolidation
Description of service
There is a variety of ways debt consolidation companies offer assistance to those in debt. One of the usual methods is for the debt consolidation company to provide a loan equal to either the value of the debts or more. This loan is secured against the debtor바카라 사이트™s property. The debtor then uses the loan to pay off any outstanding debts with the result that he/she only has one creditor - the debt consolidation company. Interest will accrue on the amount loaned.
Supply and liability
The debt consolidation company is making a grant of credit, exempt under the VAT Act 94, Schedule 9, Group 5, item 2.
NB - For services concerning debt negotiation and debt collection see VATFIN3250 to VATFIN3255.