Last week several readers were told they can stop paying Amigo while their complaint is outstanding, through Equitable Set Off. This is what I have been saying Amigo should do since last December when they announced their first, now rejected, Scheme of Arrangement. Amigo are trying to set up a second Scheme. But until now they have been insisting that people who have made a complaint have to … [Read more...]
Debt news – 19 September 2021
I've been on holiday for a week (the Gower - fabulous beaches!) so what have I missed in this round-up? Leave a comment below! Tweet of the week Another Housing Secretary comes and goes without the Social Housing White Paper being brought into law. More than 4 years after Grenfell, we’ve had 4 ministers but still only promises to empower tenants, provide greater redress/regulation and … [Read more...]
Bankruptcy – should you get a new job? Or work overtime?
A couple of readers have asked recently about whether it's sensible to turn down a job or overtime when you are bankrupt. Two things matter in this sort of situation. First, have you been discharged from bankruptcy? Almost everyone is discharged from bankruptcy after a year. And secondly, do you have an Income Payments Agreement (IPA) set? In an IPA, you have to make monthly payments for … [Read more...]
Debt news – 12 September 2021
For debt advisers, the UC cut dominates all other stories. But the NILS pilot start up (at last!) is good news. And the “Payment revolution” article is very interesting. Debt news “A payment revolution that is killing off credit cards “ Times (paywall): Monzo, Barclays, Apple, Goldman’s and other banks are looking looking at launching BNPL products. Plans announced for new UK wide No … [Read more...]
How much must you earn to replace the £20 UC cut?
The government wants people to work more to replace the £20 Universal Credit (UC) cut coming up in October. Many people would love to earn more but can't get the hours. Others can't work for health reasons or caring responsibilities. But let's look at the situation for people who may be able to earn more. Usually, extra income reduces their UC because a taper of 63p in the £ is applied. … [Read more...]
Guarantor lender Buddy Loans goes into administration
Advancis Ltd, trading as Buddy Loans, went into administration on 7 September 2021. Buddy Loans was a small guarantor lender. Its loans were typical of the UK guarantor market - between £1,000 and £10,000 lent on a 1-5 year term at a 49.9% APR. The FCA describes these loans as "high cost". Buddy's slogan was: If you've got a good BUDDY, you can get a loan!" Advancis's last available … [Read more...]
Debt news – 5 September 2021
My two picks from last week's news are We all pay the price for narrow thinking on social protection and (for debt advisers) Court and Tribunal Fees which are increasing. Debt news Non-Standard Finance chief John van Kuffeler resigns before latest funding drive Times (paywall): The departure was regarded as a necessary step as Non-Standard Finance tries to raise about £80 million in cash … [Read more...]
Section 13A – a little-known way to get Council Tax written off
Councils in England and Wales can reduce or write off your council tax under Section 13A (1)(c) of the Local Government Finance Act 1992. This has been called "the best-kept secret in council tax law". These Section 13A write-offs can be used if your house is uninhabitable because of flooding or fire. But you can also get a write-off if you have no money to pay your council tax after paying for … [Read more...]
Debt news – 29 August 2021
The proposed £20 a week cut to Universal Credit is the biggest story this week. Debt news Financial quicksand is popping up everywhere Citizens Advice: a dark combination of nudge and sludge.. online spending that’s easy to slip into but difficult to get out of. Klarna Continues Rapid Expansion but Losses and Customer Defaults Mount Money Expert: While Klarna's credit losses are … [Read more...]
Amigo’s Scheme rejected – now looking at a new Scheme
UPDATES Amigo’s Scheme of Arrangement was rejected by the court after it was opposed by the FCA as unfair to customers and too generous to shareholders. See Court rejects Amigo Scheme for details. Amigo is working on a second Scheme. The recent Amigo results don’t contain anything useful about what the next Scheme might look like. I can't see a new Scheme starting until late November at the … [Read more...]
“I’m using my credit card. But my report says I’m not!”
Mr M asked: I am trying to build my credit score but feel I am getting nowhere. I had 2 accounts in default which I paid about 1 year ago. My bills are paid on time. I have a Capital One credit card with a £200 limit. I always get £50 worth of petrol on the last Friday of every month and pay it manually a few days later. But I got an email from Credit Karma saying "When your last report came … [Read more...]
Debt news – 22 August 2021
My two picks of last week's news are Duty calls: will the FCA's proposed consumer duty be effective? and Paypal scraps late fees for buy now, pay later customers. Debt news Duty calls: will the FCA's proposed consumer duty be effective? Money Advice Trust: An enhanced supervision and enforcement regime would also allow the FCA to better monitor firms to identify poor practice and intervene … [Read more...]
Want to consolidate your debts? 5 errors to avoid
Lots of people want to consolidate all their debts into one loan. Making just one monthly payment sounds simpler. And the interest could be lower - a big improvement, surely? Consolidating can sometimes be a good idea, but you have to be careful to get it right. Most debt advisors have seen this go badly wrong for too many clients... So if you want to get this right, here are the five big … [Read more...]
Off to uni ? Time to plan your finances!
You have the A level grades - well done! There are now just a few weeks to get organised for uni in September 2021. What should your top priorities be for managing your money? And what should you avoid? Living on a student loan is hard You will probably get more money in your bank account than you have ever had before. But most students find it harder to manage than they … [Read more...]
Debt news – 15 August 2021
My picks this week are Second-hand car sales soar amid shortage of new models and, for podcast fans, Big Little Ideas. Tweet of the week Bumper edition of @InstituteMA Quarterly Account... with @DebtCamel @ColinTrend @TaxAidUK @MegvanRooyen @Shelter specialist debt team & @DebtWe amongst others - and a scorching critique of @MoneyPensionsUK debt advice contracts... 👀 … [Read more...]
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