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\n\t\tThe financial guru is urging people to rethink their document disposal habits (Picture: Getty)<\/p>\n
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\n\t\tThe financial guru is urging people to rethink their document disposal habits (Picture: Getty)<\/p>\n
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When decluttering<\/a>, you may be tempted to chuck that pile of papers you\u2019ve kept \u2018just in case\u2019\u2026 but don\u2019t consign them to the bin just yet.<\/p>\n In the latest edition of his newsletter, the Money Saving Expert (MSE) founder<\/a> recommends hanging onto financial documents for longer than you might think; at least six years in some cases.<\/p>\n The \u2018conventional wisdom\u2019 is to keep bank, credit card<\/a> and other paperwork for this long, because it\u2019s believed that\u2019s how far HMRC<\/a> can ask you to go back if you\u2019re being investigated for tax purposes<\/a>.<\/p>\n This timeframe applies most to limited companies rather than individuals doing self assessments, who normally only need documentation for around 22 months after the end of the financial year.<\/p>\n But beyond tax, it\u2019s a good idea to retain certain records, as they could prove vital one day \u2014\u00a0something those who reclaimed<\/a> mis-sold PPI and packaged bank accounts will attest to.<\/p>\n \u2018Evidence of systemic mis-selling often takes years to work through the system \u2013 if it\u2019s related to a pension<\/a> it could be many decades,\u2019 Martin explained back in a 2013 blog post. <\/p>\n \t\t \u2018It\u2019s impossible now to say what you may need the paperwork for in a few years\u2019 time. Therefore for safety, keeping old documents as long as you can \u2013 even for now-closed products \u2013 is a reasonable precaution.<\/p>\n To view this video please enable JavaScript, and consider upgrading to a web The personal finance guru was proven right then, and is now highlighting the issue due to the recent car finance scandal<\/a>, where regulators are proposing a mass redress scheme<\/a> for unfairly-sold policies taken out from April 2007.<\/p>\n According to Martin, \u2018the likelihood is that the further back you go\u2026 your chances of success [with a claim] increase greatly if you have kept some form of paperwork, either the finance document itself, an old credit report with it on, or bank statements showing repayments.\u2019<\/p>\n This is because the vast majority of companies will get rid of customer documents for a maximum of about six years \u2014\u00a0especially if an account is closed. <\/p>\n \u2018For complaints to firms or the Ombudsman, the usual rule is six years from when it happened, or three years from when you realised something was wrong,\u2019 Martin continues<\/a>. <\/p>\n \u2018Yet these rules stretch when there\u2019s widespread mis-selling, and regulators often allow much older cases. The real barrier isn\u2019t time \u2013 it\u2019s evidence.\u2019<\/p>\n The most important documents to keep<\/p>\n You don\u2019t need to hoard every single bank statement for decades on end, but to make sure you don\u2019t chuck something important that a claim eventually hinges on, he suggests holding on to these documents for as long as possible:<\/p>\n Applications and agreements\u00a0for loans, credit cards, mortgages, car finance and HP etc.<\/p>\n A couple of bank statements a year\u00a0showing interest, fees or add-ons. And before switching or closing accounts, make sure you download key statements and agreements.<\/p>\n Opening or upgrade paperwork\u00a0for financial products like packaged bank accounts and savings.<\/p>\n Booking confirmations\u00a0for flights or costly travel.<\/p>\n Costly purchases\u00a0\u2013 keep a record of who you paid and when, and keep the receipt and any warranty or guarantee.<\/p>\n This should be sufficient proof of what you bought and how much you paid.<\/p>\n Just make sure you store them somewhere safe, and back up so you have both physical and digital copies you can access if required.<\/p>\n \u2018You never know what scandals may be revealed in the future,\u2019 Martin adds. \u2018A small folder (or a few digital scans) may just be worth \u00a31,000s to you down the line.\u2019<\/p>\n Arrow Arrow Arrow![\"Woman](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/GettyImages-1389164889.jpg\")
\n\t\tA well-stocked filing cabinet could really pay off (Picture: Getty)<\/p>\n
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