As it's been three weeks since the last news round up, I'm picking three stories if you want some interesting reading - all blogs. IVAs, The FCA, HMRC and the IP’s role is thought provoking even if I disagree with much of it; We’re going to need another canto is a deeply depressing round-up of Housing changes last year; and my own Can you get interest refunds from catalogues & credit … [Read more...]
Debt news and policy
Debt Camel articles on what's happening in the world of personal debt in Britain.
For my collections of other news items, please see Weekly News Summaries.
Every debt adviser wants their clients to get out of debt and then stay out of debt. But there is very little evidence about how long people stay debt-free after clearing their debts, through debt management or insolvency. So CAP's Freedom Report, published this week, is very interesting reading. DMPs and DROs were the most frequently used debt solutions for CAP clients in 2015, who had an … [Read more...]
I recently read Scarcity: Why having too little means so much by Sendhil Mullainathan and Eldar Shafir. Since then I have been recommending it to friends in the debt advice world. I think Scarcity is a very interesting read for anyone interested in personal debt advice and policy in Britain. Many of its arguments are directly applicable to the idea of introducing a breathing space for debt that … [Read more...]
Paying your mortgage on time helps your credit score. Shouldn't paying your rent do the same? That is the idea behind Credit Ladder, where tenants renting from a private landlord can sign up to have their rent payments reported to Experian. There aren't any figures published yet on take up, but Credit Ladder's director, Asa Bentley said: The reaction to our service has been beyond our … [Read more...]
Most people would be delighted to get a letter saying a bank has looked again at their PPI reclaim from a couple of years ago, decided they got it wrong and that a refund should have been paid so a cheque for £2,000 is on the way. But for Mrs P this wasn't good news. Her first thought was not what to do with the money, but would it make a difference to her Debt Relief Order. She talked to the … [Read more...]
Many people are making affordability complaints about payday loans, asking the lender to refund interest. Until now, lenders have refused to look at any refunds for payday loans that were taken out more than six years ago, saying the Financial Ombudsman will not consider these cases. Earlier this year there seemed to be some inconsistent decisions from the Ombudsman as to whether their rules … [Read more...]
On 2nd November, the FCA announced that MotorMile Finance UK Ltd (MMF) had agreed to provide redress to more than 500,000 customers for "historic failings": The firm had inadequate systems and controls over due diligence. In particular, it failed to conduct sufficient due diligence upon the purchase of a debt portfolio to be satisfied that the sums due under customer loan agreements were correct. … [Read more...]
On 1st November, the Registry Trust published the statistics for CCJs in the third quarter of 2016, saying: Consumers in England and Wales are facing a decade-high level in the number of CCJs. ... There was a year on year increase nearing 50 percent in the third quarter of 2016, with more than a quarter of a million (256,847) judgments registered against consumers in England and Wales. This … [Read more...]
The FCA says that over a hundred debt management firms who applied for authorisation have been refused or have withdrawn their application. In September 2016, Debt Clever became one of these firms. Some firms that are closing are looking for ways to continue to make money from their clients. My previous article, Why the FCA should ban the Compass debt advice model, has some examples. This … [Read more...]
Following an Appeal Court ruling on Horton vs Henry, published in October 2016, pensions are once again safe if you go bankrupt. The full judgment is here. The background to this case was: before 2000, pensions formed part of a bankrupt's estate and would be taken once the bankrupt reached pension age; the Welfare Reform and Pensions Act changed this. For people going bankrupt after … [Read more...]