"The bill gives us the once-in-a-generation opportunity to prevent more people becoming trapped in grossly unfair credit deals."

"You may think that once you've signed a contract, it's legally binding, no matter what. But if the terms in the contract are judged to be unfair, you may not be bound by them."

WANT TO KNOW MORE?

OTHER STORIES

The Office of National Statistics is expected to reveal on Tuesday a sharp rise from September's five-year low of 1.1% for the consumer prices index. A survey of economists by Reuters suggests a rise to 1.5%, with upward pressure likely to come from rising furniture and car prices. Howard Archer, chief economist at City forecaster IHS Global Insight, expects the CPI figure to hit 1.6%. 'This is expected to be primarily the consequence of very unfavourable base effects due to consumer prices falling markedly month-on-month in October 2008 as oil prices headed down sharply from their mid-July 2008 record highs of around $147 a barrel. 'The recent firming in oil prices to a 14-month high of $80 a barrel and sterling's weakness is also likely to have some upward impact on inflation in October.' The retail prices index, an alternative measure which has been recording deflation since March, is expected to show prices falling less sharply. Archer estimates September's -1.4% measure will close to -0.8%. The Reuters survey suggested it would be -1.0%. The deflationary effect in RPI comes mainly from the dramatic cuts in mortgage repayments in the past year - a result of the Bank of England's aggressive rate cutting between October 2008 and March 2009. However, the indices are likely to face more inflationary pressures in coming months, with the current oil price likely to look high compared with the low of $32 a barrel that it hit 11 months ago. A temporary reduction in VAT - from 17.5% to 15% - will be reversed on 1 January, creating an instant rise in shop prices. The Bank of England has been forecasting a short-term rise in inflation followed by a fall beyond that. Its quarterly inflation report, published on Wednesday, drummed home that position. It downgraded its long-term projection, expecting inflation to remain below the 2% target in two years' time if interest rates rise from the middle of next year as markets have been expecting. But it also now expects inflation to rise more sharply than it had said in the August report to above 2% in the next few months (see graph below) before easing back to around 1.6% in the medium term. The inflation report pushed back market expectations for the first rate rise from summer 2010 to later in the year. Opponents of the Bank of England's £200bn quantitative easing programme - a system of creating money and buying asset in an attempt to revive the economy - fear that it may be creating inflationary pressures further down the line. The programme, while arguably having some success with keeping borrowing rates pegged back, has made had only limited success in increasing money supply, which would ultimately create inflation. Analysts believe that much of the money is being held by recession-shocked companies and banks in a bid to improve their financial positions rather than lent out or invested.

Public service administrative professionals also saw a rise of nearly 11%, according to This is Money analysis of figures from the Office for National Statistics.

The earnings data is published in the Annual Survey of Hours and Earnings and covers the average pay according to occupation for full-time workers including over 400 trades and professions.

Earlier this week figures from the ONS revealed that public sector workers enjoyed average rises of 2.8% in September. But workers in the private sector, which is losing nearly 2,400 jobs a day, got just 0.8%.

Last month Alistair Darling ordered a pay freeze for 750,000 public sector workers to help bring Britain's disastrous public finances under control.

Judges, GPs and senior civil servants are among those who will have their pay frozen next year - while prison officers, hospital doctors and dentists will receive increases of less than 1%. The Armed Forces will be exempted from the move.

Tory plans would go further, ordering a one-year pay freeze for the four million public servants earning more than £18,000.

Millions of private sector workers have already endured pay freezes in the past year with some even accepting wage cuts and reduced working hours. Economists say this new-found flexibility has helped keep job losses relatively low compared to previous recessions.

The ONS figures, published on Thursday, showed that overall the average annual wage for full-time employees rose by 2.6% to £25,800.

The occupation which saw the biggest rise in pay, according to the ONS ranking, was roundsmen/van salespersons, with a 32% rise to £22,671 per year.

Floorers and wall tillers saw a rise of more than 20% bringing their average wage packet to £24,535. Air and rail transport operatives wages rose by 18.5% and 17.4% bringing their pay to £26,528 and £30,787, respectively.

Moulders and die casters saw the biggest drop in average annual pay, with a 17.5% fall to £22,275.

See the list of the top ten winners and losers in pay rises below. For a full list of occupations and pay see where your job fits in our guide to the best paid jobs.

But many people dread it as they worry about the money they are spending.

Year in, year out, thousands of people give in to the pressures of spending and run up huge amounts of debt throughout the festive season.

So what can we do to avoid getting into debt over Christmas?

My advice is to plan, prepare and budget - and here are a few tips to help manage your money ahead of what can be one of the most expensive times of the year.

Budgeting

Work out your budget - decide what you can afford and stick to it.

Although Christmas will soon be upon us, it is not too late to start saving

Do not feel daunted by the idea of budgeting and do not feel pressured into spending more than you can afford to.

Your local credit union is a good place to start when looking for somewhere to help you start taking control of your money.

Credit unions are financial co-operatives owned and controlled by their members - people like you.

They provide savings, loans and a range of affordable financial services.

There are nearly 500 credit unions based in towns, cities and workplaces across Britain so the chances are, even if you have not heard of one before, there will be one near to you.

Credit unions are regulated by the Financial Services Authority (FSA) and are members of the Financial Services Compensation Scheme (FSCS), so your money is 100% safe.

As ethical organisations, credit unions look to find the best ways of helping members avoid getting into debt or taking out unnecessary loans, and they will take time to explain their products and give you the information you need.

Saving for Christmas

Credit unions offer a wide variety of ways to save, and most credit unions allow you to save in a separate account so you know that the money you set aside can be used for Christmas.

By making regular deposits into a Christmas savings account, members can relax knowing they have not had to run up huge credit card bills or taken out an expensive personal loan to pay for Christmas.

And members can spend the cash they have saved anywhere they want as they are not tied to using vouchers which are valid only in certain stores.

Many credit unions allow you to pay into a Christmas account straight from your wages or benefits - it is the easiest way to save as the money goes into the account before you see it.

Or you can pay into your account through local branches or collection points, or by direct debit from your bank account.

Credit unions do not have outside shareholders to pay.

The only people who benefit from the profits a credit union makes are the members who use their services, so you may get a dividend on the money you have saved as well.

Although Christmas will soon be upon us, it is not too late to start saving.

Try and get into the habit of saving a little each week or month; it is amazing how it can build up.

How to borrow money

If you do need to borrow for Christmas, credit unions offer great value loans too.

You do not have to pay for debt advice

Many credit union loans will cost you no more than 1% a month on the reducing balance of the loan (an APR of 12.7%).

What this means for example is that if you borrowed £1,000 over one year, you would repay no more than £1,067 in total.

Many credit unions charge less, some may charge more, but by law this cannot be more than 2% a month on the reducing balance (an APR of 26.8%).

And credit union loans come with no hidden charges and no penalties for repaying the loan early.

Get free advice

There are a number of agencies which provide free advice to people struggling with debt repayments, and these should be your first point of call.

There is also a large number of commercial organisations which claim to be able to help people reduce debt repayments and secure extra credit.

In practice, what they may provide is a larger loan over a longer period of time.

While this may provide short term relief, it is likely not to be the best solution in the long term.

You do not have to pay for debt advice, so make sure you use a free agency such as a local Citizens Advice Bureau, the Consumer Credit Counselling Service or the National Debtline.

Many credit unions have links with local debt advice agencies and will be able to put you in touch with someone local you can talk to.

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.

Cases of misleading advertising and poor debt advice have prompted the review by the Office of Fair Trading.

Companies in the sector tend to negotiate on behalf of consumers to reduce their debt burden.

But fees are added to the repayment amount and vulnerable customers can end up in a worse financial position.

About 100,000 debt management agreements are reached every year in the UK.

'Complex'

The OFT said that the sector had become increasingly complex, featuring many new businesses and more online advertising, as a growing number of people sought debt advice.

This review will help us identify those practices that are harming consumers Ray Watson, OFT

This has come hand-in-hand with a rise in complaints, warnings about illegal cold-calling and the emergence of copycat websites that look as though they have come from the government or debt charities.

As part of the review, consumers will be asked to fill in a form online if they have concerns about certain companies.

"A recent increase in formal OFT enforcement action, rising complaints and new problems emerging in the market suggest that some businesses are still not meeting minimum standards," said Ray Watson, OFT director of consumer credit.

"This review will help us identify those practices that are harming consumers, as well as the reasons for non-compliance, and will help us target our enforcement action."

The results of the review will be published next year.

Separately, the Ministry of Justice is consulting on whether a code of practice or formal regulation should be introduced into the debt management industry.

It is expected to conclude in December and the government will make an announcement early next year.

Peter Bentley challenged the right of Blemain Finance, who specialise in second loans secured on a home, to repossess him.

He claimed that his contract with them involved an unfair relationship that was illegal.

The lender also agreed to charge no further interest and cut his repayments from £550 to just £150 a month.

Financial problems

Mr Bentley's financial problems started when his mother died in 2007 and he was forced to work part-time to look after his father, who was suffering from Alzheimer's.

I was in a state of panic Peter Bentley

He took out a secured loan in February 2007 for £40,000 to try to alleviate his financial problems.

But his caring responsibilities meant he had to slash his working hours from 48 hours a week to just 19, leading to a big drop in income, and he fell behind with his repayments.

Although his father moved to a care home for the last eight months of his life, and died in January 2009, Mr Bentley was unable to increase his loan re-payments significantly because the recession meant that by that time he could not work longer hours.

Mr Bentley said that Blemain then started chasing him for the repayment of his loan, which had ballooned to £47,000 by the time of this month's High Court hearing in Cardiff.

"Blemain were very aggressive and were not prepared to listen," he said.

"I was in a state of panic."

Legal challenge

Mr Bentley was represented in the proceedings by lawyers CCCL, employed by the claims management company Cartel Client Review.

"The relationship between the parties was an unfair one within the meaning of Section 140A of the 1974 Consumer Credit Act," argued Andrew Settle of the law firm.

Mr Bentley's lawyers claimed that Blemain had lent the money to him irresponsibly, taking advantage of his naivety, vulnerability and desperation.

The High Court order was made by Judge Milwyn Jarman.

The parties agreed that in exchange for Mr Bentley withdrawing his argument that there had been an unfair relationship under the Act, and in exchange for agreeing not to pursue that legal argument against Blemain again, the finance firm agreed:

. to re-write the secured loan account, cutting the repayments to £150 a month

. not to levy any interest, charges or legal costs "whatsoever."

Blemain's repossession claim was dismissed and it cannot enforce repayment of the loan by this method for five years.

After that, it can be enforced by repossession, but only if there are at least 12 months' arrears on the new level of payments, ie £1,800.

'Substantial financial settlement'

"Mr Bentley fell behind with his loan payments," said a Blemain spokesman.

"However, the matter was resolved before it went to court and we agreed to give him further time to repay what he owed.

"For the avoidance of doubt there has been no court decision on this case as a satisfactory arrangement was agreed," the spokesman added.

Carl Wright of Cartel Client Review put a different interpretation on the outcome.

"Peter Bentley was offered a substantial financial settlement, to ensure the case was not heard by the High Court," he said.

"It is believed to be the first time a mortgage and loan lender has offered a client a legal undertaking not to repossess the client's home.... for the sole purpose of preventing a judge in the High Court from setting a legal precedent against their lending practices."

In September, a judge in South Shields let a woman off an £8,000 credit card debt, also represented by Cartel Client Review.

The judge agreed that Lynne Thorius had been mis-sold a payment protection insurance policy when she first took out the card, and this meant there was an unfair relationship under the law between her and the card company MBNA.

The number of mortgages approved for house purchase, but not yet lent, rose 3,000 during the month to 56,000.

Mortgage approvals are a good indicator of short term trends in the property market, and have risen this year in line with recovery in completed sales.

Non-mortgage borrowing by individuals shrank for a third month in a row - the first time since records began in 1993.

According to recent figures from HM Revenue & Customs, sales rose to 82,000 in September, double the number sold in January.

"Lending activity has recovered in recent months, when compared to the start of the year, as buyers and sellers tentatively return to the market," said Adrian Coles, of the Building Societies Association (BSA).

"However, lending is still at levels much below that of previous years, and the slight recovery remains fragile," he warned.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors said:

"A little more money is now flowing through into the mortgage market."

"However the ending of the stamp duty exemption on properties valued at £175,000 or less at the end of December could hit activity levels particularly outside of London and the south east in the early part of 2010," he said.

Up and down

While the recent pick-up in property sales seems likely to continue for the time being, other forms of personal borrowing are in decline.

Consumer credit borrowing fell by another £300m in September, after falls of £400m and £300m in August and July respectively.

Within this, credit card borrowing held up, albeit with low levels of growth.

But other forms of personal borrowing, such as bank loans, car loans and hire purchase agreements, have fallen.

Under the combined impact of the recession and the credit crunch consumers have reined in their spending while lenders have become fussier about to whom they will lend.

In fact non-credit card personal borrowing has dropped in eight out of the past nine months.

This has been the longest stretch of contracting lending since the Bank's records started in 1993.

It wants to stop card firms raising interest rates on existing debts and to prevent them raising someone's spending limit without authority.

Monthly repayments must be used to pay off the most expensive debts first, and the size of minimum repayments will be raised to ensure faster debt repayment.

The body representing UK card issuers said it would study the proposals.

"We need to be able to demonstrate what impact these would have on consumer choice and the costs to customers of using credit cards," said Melanie Johnson, chair of the UK Cards Association.

"We will be reviewing the evidence and we expect the government to do the same.

"These proposals risk disadvantaging more customers than they protect," she added.

'Exploited'

The government said that credit and store companies had to "clean up their act" because the relationship between card companies and their customers was "unfair" and should be challenged.

"It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without proper explanation," said Consumer Minister Kevin Brennan.

"Consumers should not feel each month as if they have been exploited or disadvantaged," he added.

The latest proposals, which are now being put out to consultation by the Department for Business Innovation and Skills (BIS), include:

. changing the order of priority for credit card repayments, so that the most expensive debts, such as cash advances, are paid off first

. increasing the minimum amount that must be paid off each month to accelerate the overall rate of repayment

. banning the practice of raising borrowers' credit limits without their consent

. restricting or banning increases in interest rates on debts already incurred.

Culture change

The government's proposals were welcomed by consumer organisations.

We see far too many people on low incomes who have drifted into very high levels of borrowing as a result of unsolicited increased access to credit Teresa Perchard, Citizens Advice

"For too long, card companies have been allowed to apply the tricks of their trade to the detriment of millions of consumers," said Phil Jones of Which?

"We think it's simply wrong to entice people into spending more than they can afford and then to squeeze as much money out of them as possible."

Malcolm Hurlston of the Consumer Credit Counselling Service (CCCS), said: "The government has put its finger on the four main problems that consumers have with credit card debt."

"We believe that the banks should be able to change their practices on each of these but if they can't, regulation will be necessary," he added.

Teresa Perchard of Citizens Advice said new enquiries about credit, store and charge card debts was the biggest group of problems that people brought to CAB offices last year.

"In particular we see far too many people on low incomes who have drifted into very high levels of borrowing as a result of unsolicited increased access to credit.

Consumer Focus said: "Borrowers should be given at least a month's notice, and a full explanation, of any interest rate increases by their lender."

'Long overdue'

The Conservatives said the proposals "do not go far enough to address the culture of problem debt and do not seek to change consumer behaviour or encourage more responsible borrowing".

"When we tried to change the law to stop unsolicited increases in fees and interest rates the government opposed the measure," said shadow consumer minister John Penrose.

The Liberal Democrats said that reform of the credit card industry was "long overdue".

"The government mustn't dither like it has on banking reform. We need a clear and transparent system that works for consumers, not just the financial services industry," said Lib Dem business spokesman John Thurso.

'Fair principles'

The government's latest plans follow other limits on credit card practices brought in earlier this year.

These ideas came after a government-organised "credit card summit" in November last year, at which card companies agreed to a set of "fair principles".

Among other things, they agreed to stop raising interest rates when customers fell behind with their repayments.

The government also pledged to ban the issuance of unsolicited credit card cheques and legislation to do this is now going through Parliament.

The Treasury Select Committee is investigating how searches can impact on consumers' credit ratings.

Uncertainty about the system meant some people missed out on credit or were put off shopping around.

But numerous credit applications in a short period of time could signal fraud or a chequered history, agencies said.

Transparency needed

Many consumers did not know the effect that credit searches had on the rates that they might be charged, the committee hearing on Tuesday was told.

Our concern is that people do not apply because of the uncertainty of the system Toby Van der Meer, Moneysupermarket.com

The committee heard various submissions from the public outlining how they applied for a loan at a certain rate, only to be "accepted" at a much higher interest rate.

Rejecting such an offer affected this consumer's status if they then applied for a different loan, according to Martin Lewis of Moneysavingexpert.com.

He claimed that 70% of people applying for unsecured credit were rejected. Of the remainder, two-thirds got the loans at the advertised rate, but the other third were offered a higher rate.

However, these numbers were challenged by the British Bankers' Association (BBA). Eric Leenders, of the BBA, said that only up to a third of those offered loans got rates higher than were advertised.

Toby Van der Meer, of Moneysupermarket.com, told the committee that more transparency was needed in the process as it caused a fear of shopping around.

"Our concern is that people do not apply because of the uncertainty of the system," he said.

He suggested that a system was available which allowed for "quotation searches" that did not leave a footprint on people's credit history if they decided against taking the loan.

'Integrity'

But the credit reference agencies giving evidence at the hearing said that only a small proportion of those who apply for loans were affected.

One suggested that about 7% of consumers making applications had more than five credit searches over a three-month period, and a small proportion of these saw their credit rating affected.

Mr Leenders argued that changing the system could affect the "integrity and comprehensiveness" of how lenders shared information about borrowers. This was done to prevent high numbers of defaults and fraud.

The committee's chairman, John McFall, said that there was a huge difference in the evidence provided by the credit reference agencies and the banking group compared with that given by price comparison and consumer websites.

"This is where Woolies had their clothes," says Stacy, standing by row after row of brightly-coloured washing detergents.

The red Woolworths branding on the shelves has long been replaced by the logo of 99p Stores, which moved into this site in Shirley, Southampton, last December.

Within a few days it was open for business, taking £76,000 in the first five days, 50% more than its bosses expected.

WHY SHIRLEY? One year ago, the BBC began monitoring Shirley It's a typical High Street, with a mix of independent and chains A bus ride away from Southampton city centre, it has 259 businesses and 13,900 people On Friday, shopkeepers will have their say

The loss of Woolworths in Shirley was echoed in more than 800 High Streets across the UK, ending a 99-year history in British towns and cities.

It's a store greatly missed by Stacy Lee, 29, but her mum Carol is less reflective and comes to 99p Stores three times a week.

Clutching a basket holding a crochet window curtain, a pack of Fox's Party biscuits and three bottles of Lenor fabric softener, she asks: "Where else could you get a six-foot blind for 99p?"

The shelves behind her resemble Woolworths of old, with felt tip pens, poster art sets and calendars. Indeed, the manager says that some customers took three months to realise the shop was no longer Woolworths.

Even some of the staff remain. Cashier Maggie Bell was with Woollies for 20 years and now she's sitting in the same spot but with a different uniform.

Irritation

But it's not all business as usual outside. Crusty Cottage bakery opposite is to close down next week. Irene Parker, who has been there for 10 years, blames the disappearance of Woollies.

"It changed a lot. There are less people down this end now. The 99p store gets quite a few in but I haven't seen them walking along this side of the road. The recession has had an impact, with a lot of shops closing and more charity shops."

Changing faces of Shirley

The Manor pub has recently called "last orders", while a hair salon, a women's clothes shop and a stationery shop have closed their doors. But there are still far fewer vacant shops in Shirley than elsewhere - 7% is half the national average and one-sixth the level in some towns.

The street has three times the national average for charity shops and discount stores, according to the Local Data Company, and this is a source of regret for some shoppers.

"There used to be a few butchers and a lovely bread shop," recalls Priscilla Hafey, 64, who has lived in the area all her life.

The loss of such businesses pre-dates the current recession, to the rise of the supermarket and the popularity of the weekly shop. But other changes in Shirley are more closely linked to the economic troubles. Unemployment has doubled in the area in 15 months, which means spending habits have changed.

HOW HIGH STREETS CHANGED Loss of Woolworths Fewer women's and children's clothes shops Increase in charities and discounts More empty premises Smaller supermarkets moving in

There are new shops like Cash Generator that offer payments in instalments over weeks and months. The "luxury" businesses like the tanning salon and Chinese restaurant have felt the pinch, while shoe repairs and the shop selling camping equipment - as people shun foreign holidays - have prospered.

Business is also booming at the charity shops. There are almost five in a row on one stretch. One of them, Clic Sargent, says it is 14% up on this time last year.

So that's the story of one High Street. What's been happening in streets across the UK?

Nearly one in five women's and children's clothes shops across the UK have closed since 1 January (see graph below). Adams Childrenswear closed 147 branches after being put into administration.

"It's the one area which is very much a discretionary spend," says Matthew Hopkinson, business development director at Local Data Company.

"The door has suddenly shut on the consumer credit that was spent on womenswear and childrenswear, so people are instead going to George at Asda or to discount retailers, rather than paying the full Monty."

The most visible evidence of the recession is evident with a walk down any High Street. Vacancy rates trebled in the first six months of the year, according to some analysts.

Currently the figure is about 13.5% nationally, says Experian, which predicts this will increase to 15% by the end of 2009, before a partial recovery by June 2010 to 14.5%.

Last month it was reported that there were 1,423 discount stores in the UK, an increase of 60% since the start of the downturn.

Shops like Poundland and 99p Stores have exploited the determination of consumers to save money where possible, taking advantage of former Woolworths stores where they can.

They have also benefited from the excess of stock from places like China and the Phillippines. When demand first fell at the start of the recession, it took a while for supply to diminish accordingly.

Discount stores have even moved into more affluent areas like Tunbridge Wells and Stratford-upon-Avon.

The 99p Stores celebrated the opening of its 99th shop in August. It has reported a 7% annual hike in like-for-like sales and estimates it will have doubled in size within three years.

"The number of charity shops is not great for other retailers as it puts others off from moving in with new shops," says Greg Hodge of Planet Retail.

"It's the people they attract to the High Street, the elderly and people with less money. If the High Street becomes taken over by them, the younger affluent people aren't there."

With a domino-like effect, that then puts off developers which have the power to draw in big brand names.

They benefit from reduced rates and they have a flexible supply chain - the public, he says. They can act fast because they don't need to set up a fantastic store, implement IT software, tag their products or implement the back office to monitor their stock.

So will they stay? Possibly, says Mr Hodge, if High Streets continue to lose out to online shopping. But if you believe the High Street can survive and that shops will re-open after the recession, then there could be a turnaround in about 18 months time.

Tesco Express and Sainsbury's Local have taken advantage of the vacant premises to expand on the High Streets, while Waitrose is about to launch 300 smaller convenience stores.

Along with efforts to stimulate new housing schemes in High Streets, it could be that the UK is heading back towards invigorating its town centres again, says Mr Hopkinson.

"It's partly a political move by the supermarkets, in response to the charge that they are killing the High Streets, but I think it's a good thing. We are seeing attempts to get people back to the centres."

Councils have to sit down with chain stores and independent retailers to work out how best to attract consumers back, to the detriment of neither, he says, because too many town centres look the same, dominated by big chains.

This kind of concerted action, along with more consumer-led campaigns to support local town centres, could mean the comeback of the High Street is just around the corner.

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Here is a selection of your comments.

Is it not evident that the majority of small town high streets are becoming drive through areas for motorists? Instead of being encouraged to park and shop, drivers are deterred by yellow lines, exorbitant parking charges and wheel clamps for anyone who dares to stop in the wrong place. Is it surprising that out-of-town shopping centres and supermarkets, with their plentiful free parking are doing so well?
Mike, Chard, Somerset

It's not just happening here... where my partner's parents live in the south of France it's the same story; lovely, old, bustling town centre (with limited parking) gets new and very convenient just-out-of-town vacuous, garish superstore and the town rots from the inside out. The solution is very simple - if you don't want this then do not go to supermarkets and chain stores. Tescos and Starbucks will never get so much as a penny from me. So I pay a little more for my specs, bacon 'n' eggs, hardware... everything... but a little goes a long way.
Togalosh, Brum

How can people be complaining that the high streets are dying when they are the very people that caused it to happen? There would not be a problem with high streets if people shopped in them, but, with most people shopping in a supermarket there is no demand for the high street. If you care so much, go out and shop locally, get your friends to do the same and shops will survive while they have customers.
Jos, Leeds

The death of so much of our high streets is not just due to the recession, it's also down to the unbridled, rapacious growth of the likes of Tesco who have squeezed out local shops with their catch-all approach and their desire to enrich their shareholders rather than the "community", a word with which the Tesco board will likely be unfamiliar.
Fergus Stewart, Manchester

For a return to viable High Streets, there needs to be several further changes. We'll never get back to the original values anyway. The existence of upward only rent reviews in leaseholds needs to be stopped. Secondly, shop rentals (and therefore capital shop values) have to fall. It's gradually started but a long way to go. When rents go down sufficiently, and landlords stop strangling their golden geese, things will improve. Finally, why do charity shops have lower commercial rates status? If they want to trade alongside conventional retailers in the High St, they should have to pay the same in service charges.
Richard, Chesham

Bring back the butcher the baker and the candlestick maker, says one comment, but the reason they disappeared in the first place was that residents of the towns went to the discount stores and supermarkets for cheaper prices. Shoppers look for best value and unfortunately put no premium on service or convenience hence the loss of the High Street shops and many more will follow in the recession as shoppers tighten the purse strings.
Margie Davidson, Peterhead

I grew up in a flat above my father's shop in a High Street in the 1960s/70s. It was not only a place to shop but also to encounter and chat with friends, neighbours, councillors and the local bobby, reinforcing social cohesion. Let's support our High Streets and have a community again!
Nick Goodall, Southampton, UK

Fret Music is the only shop worth going to in Shirley, so as long as that is still there it's alright!
Gareth, Canterbury (formerly southampton), UK

I moved to Tamworth 16 years ago having lived in Peterborough and London. I was attracted to a small but vibrant market town and oh how it's changed. The people of Tamworth must be very sociable, when not giving to charitable shops, they must be buying cards for friends or texting them on their new mobiles. when not doing this they are enjoying a coffee. Well that's how it would appear if you look at the shops. Now if you want to buy a book or a magazine then you have a real problem. You used to visit the centre to buy essentials now you only go if it is essential. The sad thing is that virtually every small town you visit now looks exactly the same and the alternative is the ubiquitous out of town shopping centre - Curry's Comets Halfords ad infinitum. God, this country is a depressing mess.
David Jones, Tamworth

Charity shops need not spell doom for a high street, not if they are done right. My high street has a very high concentration of charity shops, a co-op but also an independent butcher, fishmonger, grocers and corner shops, stationers, cafes, a chocolate shop, delis etc etc etc.
Owen G, Edinburgh, Scotland

We have had a battle in our high street, sadly Aston Martin have moved on and Tesco saw an open door, the residents of Newport Pagnell fought tooth and nail to keep them out and won this time round. I totally agree with everyone, the individuality of our high streets is sacred, yet is ever decreasing, bring back the butcher, baker and candlestick maker....
Sarah K, Newport Pagnell, Milton Keynes

I'm in my late 20s and on a reasonable salary - and I love charity shops. They are easily the best place for second hand books and games, and often have a fair selection of music and films as well. But the best thing about them is that they all have different stock, so if you are looking for something specific you might find it somewhere.
Matthew, Sheffield

I work in an area of Cardiff known as Whitchurch and amongst around 20 shops at least six are charity shops, the rest are salons or restaurants. It's no wonder you don't see anyone below the age of 40 in the street with such shops. Sounds like Shirley is fast going that way
Stephen, Cardiff

I now live within a bus ride of a cash convertor, a "Gold Wanted" shop and two pawnbrokers. This in a High Street that used to have an Alders AND a CO-OP department store. I still do my best to shop locally but do find myself in charity stores more simply because they now offer more choice than they once did.
Katherine, Eltham

That's just great! As if high streets weren't already carbon copies of each other, this will finally put an end to any charm that individual high streets may have had. Just what we want: to go to a neighbourhood and be greeted with the ubiquitous look of a Tesco, next door to a Next, next door to a Boots...
Tanya D, London, UK

IN EARLY spring, a West Country businessman, Duncan Birch, and his wife Debbie feared they might be among the first victims of the credit crunch. A letter to the couple from their bank claimed they owed more than £100,000.

But what was particularly galling was that the large sum being claimed related to a debt of less than £25,000 in the 1990s which they believed had been paid off. They were baffled and concerned at the size of the demand.

Two years earlier, RBS had been asking for £8,500 to settle their case, which they had been unable to afford. How on earth had this risen to more than £100,000?

According to internal banking documents obtained by the Birches, from Torrington, Devon, they claim to have found evidence that new accounts and loans were created in their name. At one stage, 80% was being charged on one account.

It appears this weekend that the Birches stumbled upon a highly questionable practice in the debt collection branch of RBS in Telford, Shropshire, whereby new accounts and loans were systematically created without customers' permission. In some cases, loan documents were even drawn up for the accounts.

According to RBS, these accounts were an internal book-keeping device and the debts were never meant to be collected or even divulged to the customers. It seems a strange accounting practice, and last week the bank was unable to explain its exact purpose. "This is simply an administrative practice that has absolutely no impact on the [actual] debt or the liabilities," said an RBS spokesman. John Healey, a former Treasury minister and now a local government minister, is to meet Stephen Hester, the new RBS chief executive, to establish the number of new loanaccounts created without customer consent and the number of customers who may have been wrongly pursued. "There are clearly questions for the bank to answer," he said.

The Birches insist they are being pursued for the debts from these accounts. They have had legal charges put on their home by RBS at Barnstaple county court. They say it means when the home is sold, they will be liable to pay RBS about £70,000.

"They claim we owe this ridiculous amount and it's almost ruined our lives," said Birch, 46, last week. "They have certainly pursued us for money in these accounts which were created without our consent."

In the 1990s, the Birches started a company which created printed T-shirts. The business was initially successful, but foundered when one of their main clients went bust, forcing them to close their business with about £24,000 of debts at the bank.

They agreed to pay back RBS at £300 a month, on the basis that interest and charges would be frozen. They paid back £7,500 but were then unable to make further payments.

After a county court judgment against them in 1999, they again started paying back £300 a month. By 2006, according to their own estimates, they had paid back £33,000.

At this point, RBS offered to settle the case for £8,500, but the couple could not afford the one-off payment.

Then in early 2008, the bank claimed the Birches owed more than £100,000 and put the legal charges on their home.

Armed with advice from online internet forums, the Birches made a data protection request to the bank. The documents they received detailed a fascinating trail showing the numbers on their accounts had been changed and three new "capital and interest" loans created without their consent.

While the couple thought they were paying back debts on which no interest was due, high rates were in fact being levied.

A bank statement for Debbie Birch's account, which has been seen by The Sunday Times, shows that interest of £15,883 was charged in just one quarter in 2001.

According to another document, the Birches were being charged 80% interest when they were trying to pay back their debts. The bank claims the error was rectified.

There are other victims. Paul Walton, 41, from Rotherham, South Yorkshire, discovered that RBS had created different accounts in his name without his consent. He also demanded bank documents under data protection laws after being told in 2006 he owed £16,000 on a loan taken out eight years earlier for less than £9,800.

The documents showed his accounts had been changed and a previous overdraft with the bank converted to a "flexible capital and interest loan". He was also sent two loan agreements that had been drawn up without his consent.

According to a letter sent to Walton's MP, Healey, in November last year, a senior banking official said: "I confirm that Mr Walton has never signed or agreed to these loans. The loans have never existed. The forms were inaccurate and sent in error."

RBS said the court judgment against the Birches governed the amount they owed and "this is all they have been asked to pay".

The spokesman said the bank accepted it had made errors in regards to Walton. Significant interest had been charged on accounts in his name but this was an "administrative" process that had no bearing on the sum he owed.

This weekend, the bank was unable to say how much the Birches owed or how the debts had mounted up.

"We just can't see any light at the end of the tunnel," said Duncan Birch.

The bank, which was effectively nationalised 10 days ago, has admitted that its debt collection branch drew up new loan agreements and accounts for customers without their consent. MPs this weekend questioned whether the scheme was legal.

Duncan and Debbie Birch from Torrington, Devon, say their £24,100 overdraft ballooned into a debt of £100,000 when new loan accounts were created without their permission.

Documents show that at one point the couple were being charged an interest rate of 80%, although the bank claims this was rectified. Yet the couple say it has now obtained a legal charge of £70,000 on their home.

Another customer, Paul

Walton, 41, from Rotherham, South Yorkshire, found loan documents drawn up in his name for new accounts. "They were fabricated and there was interest accumulating in the accounts," he said.

The bank claims the new loan accounts were created "purely" for administration and that it was never intended that the debts should be collected. They were unable to

explain exactly what the purpose of the "administrative accounts" was, why they had created them and how many customers were affected.

John Healey, a former Treasury minister and Walton's MP, said the situation was "deeply disturbing".

"The system does not appear tight enough to prevent [these accounts] becoming the basis of real debt demands and court action," he said.

Debts are now being bought and sold by companies who seem to have no idea why you owed the money in the first place. The result is that many of you are being hounded for money by people you've never heard of for sums that you might not even owe.

HIGH-STREET banks are selling customers' debts to "vicious" agencies who begin bankruptcy proceedings against homeowners for debts as small as £1,800.

The agencies are behind a surge in statutory demands - letters giving debtors 21 days to clear debts of £750 or more or face bankruptcy and repossession of their home.

Banks and credit card companies have sold debts worth £15 billion to debt-purchase firms as they seek to get bad debts off their books and cut their in-house collection costs.

Experts say the low-profile firms who buy the debt behave more aggressively than the original lenders.

Baines & Ernst, which helps people organise their finances, said the number of statutory demands issued by these firms had doubled in the past year.

Nick Pearson, director of external affairs, said: "When banks used to hold on to the debt, they didn't want to damage their reputation by issuing statutory demands. Debt purchasing firms don't have those fears and are much more vicious with people."

When a bank sells the debt to an agency, it typically writes off up to two thirds of the value of the outstanding loan.

Citizens Advice, National Debtline and the Consumer Credit Counselling Service have unearthed harassment tactics used by some debt collection firms. These include: Calling debtors up to nine times a day and sending repeated text messages.

Refusing to respect debtors' privacy, by talking to their parents, partner and teenage children about their debts. Contacting debtors at work, even when they have been urged not to. Refusing to talk to third parties appointed to represent the debtors' interests.

Deborah Shields from National Debtline said: "We currently have a case of a woman who has had an order for sale placed on her home after she was pursued for a debt of £1,800."

Lenders often simply use statutory demands as a scare tactic: most are not followed through to bankruptcy.

One debt collection agency, 1st Credit, has taken over a package of 3.2m debts from the banks, worth £4 billion. Pearson said: "1st Credit is behind 50% of the statutory demands that we see. We are seeing perhaps 40 cases a month where a debtor is signed up with a plan to make monthly instalments. Then 1st Credit has bought the debt from the bank and wades in saying that the debt has to be paid in full immediately."

Susan Towey, 40, and husband Andrew, 42, from Mexbor-ough in South Yorkshire, were called by 1st Credit on Christmas Eve and told they had seven days to pay almost £12,000 or they would be made bankrupt. The Toweys had fallen behind with payments on their £15,000 Halifax loan after Andrew's plumbing business faltered.

"I was begging with the woman on the phone, but she said they would only wait three months before they issued a statutory demand," said Susan. "It was just so frightening. I honestly considered killing myself that night. It's been the worst Christmas of my life." David Rowen, 37, a taxi driver, and his wife Debbie, 34, who live in Spondon, Derbyshire, received a statutory demand for a £2,400 debt with Lloyds TSB on Christmas Eve from Connaught Collections, which is part of the same group as 1st Credit.

"I'm not trying to get out of paying this debt if we do owe it, but they won't even tell us where it comes from," said David Rowen. "They have been abusive and aggressive and they just don't listen."

A spokesman for 1st Credit said: "If we are unable to reach agreement on how the debt will be settled and only after all attempts have been exhausted, do we consider using legal means to resolve the situation."

Staff who work for 1st Credit are told to honour the code of the Credit Services Association, which represents the debt-purchase industry. It urges staff to "conduct dealings with debtors in a fair and reasonable manner".

Gareth Thomas, the consumer minister, said he was considering strengthening regulation to ensure creditors took legal action only as a last resort.

A NATION IN DEBT

£1.2 trillion - total amount of debt owed by Britons

£15 billion - value of debts bought from high street lenders by debt purchase companies

150,000 - bankruptcies expected this year. A rise from 28,000 in 2003

75,000 - repossessions expected this year

500,000 - homeowners expected to fall at least three months behind in their mortgage payments

National Debtline: 0808 808 4000