My pick of last week's news is Millions of UK homes face winter energy bill hike of over £110 a year - one more reason why the withdrawal of the £20 a week Universal Credit in October would be a disaster. Debt news Northern English cities faced ‘avalanche’ of debt during Covid – study Guardian: Richer neighbourhoods in southern England saved £12 for every £1 saved by those in poorer … [Read more...]
Debt news – 20 June 2021
My pick of last week's news is, like last week, Buy Now Pay Later news, this time with LayBuy improving its in-store offering over Klarna's. Debt news Laybuy launches digital card for in store ‘buy now, pay later’ shopping Which? using BNPL in store could be about to become more common as a result of Tap to Pay with Laybuy. Discretionary council tax reduction — How to guide Citizens … [Read more...]
Amigo – what is happening with “Scheme 2.0”?
It is now three weeks since Amigo's proposed Scheme of Arrangement was rejected by the court. The FCA told the court the Scheme was not fair to customers, a more fair Scheme could be proposed and it didn't think Amigo would go into administration immediately. The judge concluded by saying: The FCA expects the directors to continue to explore and promote a restructuring which fairly allocates the … [Read more...]
Equifax changes credit scores on the quiet
Equifax used to calculate credit scores for consumers out of 700. But in April 2021 it switched to calculating scores out of 1000 and has changed the bands used to describe your credit rating. Oddly Equifax hasn't made an announcement about these changes. The Equifax Credit Report & Score has been updated but hardly anyone uses that. Most people see their Equifax score using the … [Read more...]
Court rejects Amigo Scheme of Arrangement
On 19 May 2021 the Sanction Hearing was held for Amigo's proposed Scheme of Arrangement. On 24 May, judgment was given and the Scheme was rejected. The Amigo Board says : The Board is reviewing all options including an Appeal. A further update will be given in due course. This article looks at the Scheme, the judgment and what may happen next. The proposed Scheme The Scheme was proposed by … [Read more...]
Amigo’s Scheme rejected – now looking at a new Scheme
UPDATE The Scheme of Arrangement proposed by Amigo has now been rejected by the court after it was opposed by the FCA. See Court rejects Amigo Scheme of Arrangement for details. We do not know yet what Amigo will do. In June I looked at Amigo – what is happening with “Scheme 2.0”? In July, FOS emailed customers saying it was not working on their Amigo complaints. A lot of people with current … [Read more...]
Sunny customers owed refunds paid at 3.21p in the £
On 28 May 2021, the KPMG administrators announced they will be paying 3.21p in the pound to c 40,000 people who submitted a claim for unaffordable loans. All 500,000 customers with mis-sold loans should have had their credit records repaired, see below. 40,000 people is a low number as the administrators calculated that more than half a million were mis-sold loans. Many people may not have … [Read more...]
Money Shop Scheme starts paying out – customers will get 4.31%
I have asked Instant Cash Loans (ICL) what percentage rate will be paid in the ICL Scheme of Arrangement and when customers will be paid. I am told the Scheme will be paying 4.3p in the £ to customers who are due a refund. Some payments are starting this week, they are expected to complete by the end of June 2021. UPDATE - ICL have now officially said it will be 4.31% Which customers … [Read more...]
What help is there when you can’t pay the mortgage?
Special Coronavirus rules were introduced by the FCA to help people who could not pay their mortgage: you could have 6 months payment deferrals - sometimes called payment breaks or payment holidays - if you or someone in your household had financial problems because of Coronavirus; the deadline to apply for a payment holiday was 31 March 2021; all payment holidays must end by 31 July … [Read more...]
Good news – higher DRO limits from end June 2021!
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...]
The ICL / Money Shop Scheme – customers paid 4.3% in June
UPDATE A few people have not been paid by the end of June. And everyone will receive a second, much smaller payment in December 2021. See Money Shop Scheme to pay 2nd small refund for details. A "Scheme of Arrangement" is in place for borrowers from the Money Shop, Payday UK or Payday Express who were given unaffordable loans. Background to the Scheme Failure to assess affordability … [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...]
How to choose an IVA firm
Which are the best IVA firms to talk to if you are interested in an Individual Voluntary Arrangement (IVA) and whether it is a good debt solution for you? If you put IVA into Google, how do you decide which of the tempting see how much of your debt you can write off links to click on? Or you could choose the person that cold calls/texts you telling you about a little-known government … [Read more...]
What happens at the end of a DRO?
A Debt Relief Order (DRO) lasts a year. This is sometimes called "the moratorium period". At the end of this year, all the debts that were included in your DRO are wiped out. You aren't contacted at the end of the DRO year There is no "DRO Completion" check made at the end of this year. Not by the Insolvency Service and not by the debt adviser who set up your DRO. You won't be asked to … [Read more...]
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