UPDATE 10 May 2021 The Insolvency Service has announced the new limits that will be introduced for Debt Relief Orders (DROs) from 29 June 2021. These are: the total debt allowable in a DRO goes up from £20,000 to £30,000. the level of "surplus income" after paying your bills and everyday expenses has been increased from £50 to £75 per month. an increase in the general assets you … [Read more...]
Provident closes its doorstep loan operation after 140 years
On 10 May 2021, Provident Financial Group (PFG) announced that it was closing its home credit operation, also known as doorstep lending. Doorstep lending has been at the heart of Provident's business for most of its 140-year history. Agents would visit customers at home, giving loans and collecting weekly repayments. Now Provident says: In light of the changing industry and regulatory … [Read more...]
Debt news – 9 May 2021
In a 4 day week, the introduction of the Breathing Space dominated the news. Debt news Breathing Space: People in problem debt get 60-day break scheme BBC: The Treasury has estimated that up to 700,000 people could be helped by the scheme in its first year. Britons struggling with debt can now push the pause button for 60 days as charities give new Government respite scheme … [Read more...]
Money Shop, Payday UK / Express – Latest Scheme news
A "Scheme of Arrangement" is in place paying some money to borrowers from the Money Shop, Payday UK or Payday Express who were given unaffordable loans. The payout is now expected to start in May 2021 and to complete in June. The claims portal has now closed. See comments below this article for the latest news. The following information comes from the Scheme reports. the latest is from March … [Read more...]
The debt “Breathing Space” – could it help you?
The Debt Respite Scheme - better known as "the Breathing Space" - went live on 4 May 2021. A Breathing Space is a 60 day period while you get debt advice and find a suitable debt solution. During this 60 days, you get legal protection from your creditors for most debts and it stops interest and charges being added. Sounds good? For a few people this will be a real help, but often … [Read more...]
Debt news – 2 May 2021
A huge amount of important news this week, including bad news for mortgage prisoners and leaseholders affected by cladding problems. Tweet of the week Are you working under a MaPS contract? We need your help to design a survey for colleagues to gather evidence of the problems being caused. We know how busy you are, but if you can spare some time to help us with this, please drop us an … [Read more...]
Pregnant and can’t afford your IVA?
Abby is pregnant and worried she won't be able to afford the monthly IVA payments: My IVA was set up at the start of 2020. There are four debts in it, totalling £13,000. All the debts date from a previous relationship, my new partner doesn't have a debt problem. My IVA payments are £90 a month. I've managed so far, but I now need to buy things for the baby - cot, buggy etc. We are renting and … [Read more...]
StepChange redundancies & the funding of debt advice
On 22 April 2021, StepChange announced that it was proposing to cut its staff by 10%. It has started the process of consultations about 140-17o redundancies. To many people this will sound bizarre. In October 2020, the Financial Conduct Authority (FCA) found that 20 million people have seen their financial situation worsen because of Covid-19 and 7.7million people saw it worsen a lot. The FCA … [Read more...]
Debt news – 25 April 2021
My pick of last week's news is the StepChange redundancies announced in Exceptional times, exceptional measures, and the future. But Convicted Post Office workers have names cleared is a welcome bit of good news. Debt news Exceptional times, exceptional measures, and the future StepChange: StepChange announces 140-170 redundancies, 10% of its workforce, as its "Fair Share" income has … [Read more...]
How does a payment arrangement work & is one right for you?
A typical payment arrangement is an agreement to repay a credit card, catalogue or loan in affordable monthly amounts. This is also called an arrangement to pay. You can ask a lender for an arrangement to pay, or a debt collector. The key points are: an arrangement is needed if you can't afford the normal debt repayments; do not offer more than you can afford; ask the lender or … [Read more...]
“Improving my credit score – be added to my partner’s card?”
A reader asked: I have fairly recently got an Aqua card with a limit of £1,900. Credit Karma suggests this is low and a higher limit (with low utilisation) reflects well with lenders. I’ve only just had a credit limit with Aqua so can't get another one soon. But I could be added as a secondary cardholder on my partner’s credit card. This is her idea – she has a limit of almost £10k. She never … [Read more...]
Provident proposes a Scheme to cap refunds
In March 2021 Provident Financial Group (PFG) announced it is proposing a Scheme of Arrangement to reduce the refunds it has to pay to customers. They are the second major lender to seek refuge in a Scheme - Amigo is also proposing one. The PFG announcement also said that the FCA has started an investigation into Provident's affordability assessments and complaint handling since February 2020. … [Read more...]
Bankruptcy timeline – what happens & when?
This bankruptcy timeline shows WHAT is likely to happen and WHEN if you go bankrupt in England, Wales or Northern Ireland. Some of the times are fixed - the bankruptcy marker is definitely going to drop off your credit file after six years. Others are less definite, but the indications in the timeline here should be right for a large majority of the people who go bankrupt. Take the decision … [Read more...]
No set off in a Scheme/Administration when debt had been sold?
In the Instant Cash Loans (ICL) Scheme Arrangement, Money Shop, Payday UK and Payday Express customers whose debts were sold to PRAC Financial (PRAC) have not been given set-off between their ICL redress and the loan they still owe. The same situation could occur with other Schemes of Arrangement and other debt collectors. It could also arise in administrations, for example Sunny loans that … [Read more...]
95% mortgages return in 2021 – but is one right for you?
95% mortgages vanished with the pandemic At the beginning of 2020, this article started by saying "95% mortgages are back in fashion". It pointed out many more 95% mortgage offers there were compared to a few years ago. The interest rates were a bit higher than a mortgage with a 10%5 or greater deposit. But with the pandemic, mortgage lenders ran scared, concerned that house prices may fall … [Read more...]
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