Blog · Debt Camel

Debt news – 7 March 2021

The budget was the big news story last week. Money Advice Trust's 5 things we learned from today’s Budget is a good summary of the small bits that helped people in debt and the larger areas of help that were noticeably absent. Debt news The budget: 5 things we learned from today’s Budget Money Advice Trust Budget 2021: A missed opportunity for welfare certainty Policy in … [Read more...]

Correct credit records by “suppressing” them if the lender has disappeared

If you feel that your credit report is wrong, the normal first step is to ask the lender to put this right. But when the lender is in administration, the administrators may not respond to requests from you to correct your credit files. And if the lender has been liquidated, there is no-one for you to contact. Here the Credit Reference Agencies (CRAs) should help if you ask them to. Incorrect … [Read more...]

95% mortgages return in 2021 – but is one right for you?

2019-2021 - a rollercoaster for first-time buyers At the beginning of 2020, this article started by saying "95% mortgages are back in fashion" and pointed out how many more 95% mortgage offers there were compared to a few years ago. But with the pandemic, mortgage lenders ran scared, concerned that house prices may fall for the next year or two. Even a small fall will leave someone with a 95% … [Read more...]

Amigo & Provident complaints soar – new Ombudsman data

On 3 March 2021, the Financial Ombudsman Service (FOS) published two sets of statistics. quarterly data for October-December 2020 summarises the types of complaints FOS has received. half-year data shows which firms had the most complaints in July-December 2020 and how often FOS upheld the customers' cases. Caroline Wayman, the FOS CEO says: "Excluding PPI, new complaints are up by … [Read more...]

Debt news – 28 February 2021

The major news last week was the long-awaited and epic in scope FCA Guidance for firms on the fair treatment of vulnerable customers. But for a shorter read, try Louise Casey: 'Are we ever going to create a Britain for everyone?' Debt news Guidance for firms on the fair treatment of vulnerable customers FCA: We want to drive improvements in the way firms treat vulnerable consumers and … [Read more...]

Worried about starting a DMP? Answers to common questions.

A reader said she was scared about starting a Debt Management Plan (DMP). Her worries were that her husband's credit rating would be affected and that she would get lots of phone calls from creditors. A DMP is supposed to help with your debt problems, not increase them, so I thought it would be useful to look at the common concerns people have before they start DMPs. DMPs are good debt options … [Read more...]

Debt news – 21 February 2021

My pick of last week's news is the Resolution Foundations' report on rent arrears: Tackling the UK’s building arrears crisis. Graph of the week In our thought experiment, we apply the growing housing arrears and apply it to see what it could mean for the courts resolving such issues. Bluntly, the courts will be put under severe strain, causing further problems for renters and landlords … [Read more...]

Overdrafts – a hard type of debt to clear

Do you worry you will always be stuck in your overdraft? You aren't alone. Overdrafts can be the hardest sort of debt to pay off. Even authorised overdrafts aren't cheap, once you stop being a student. So what can you do that will work? Very hard to escape from The hamster on this wheel is enjoying going round and round and never getting anywhere. For many people, their overdraft feels … [Read more...]

Will my bankruptcy application be refused?

"Can I go bankrupt?" is a very common question. People worry that their bankruptcy application will be rejected because their debts aren't large enough. Or the Official Receiver will say they should repay the money they owe. Or that they don't meet the legal criteria. But less than 1% of bankruptcy applications are rejected by the Insolvency Service, so you need to stop worrying and find … [Read more...]

Debt news – 14 February 2021

My pick of last week's new are the articles on changing the DRO criteria. Tweet of the week “To recommend thrift to the poor is both grotesque and insulting. It is like advising a man who is starving to eat less.” - Oscar Wilde - — 🅼🅰🆁🅸🅰 🅼.  (@mariabowiemuser) February 13, 2021 Debt news FCA finds the Covid-19 pandemic leaves over a quarter of UK adults with low financial … [Read more...]

Proposed DRO changes – a good start!

In January 2021 the Insolvency Services started a consultation on proposals to widen the eligibility criteria for Debt Relief Orders (DROs). It estimates these changes will mean that 15,500 more people could be eligible for a DRO each year. DROs were introduced in 2009 as a simpler alternative to bankruptcy for people with few assets and no realistic chance of paying much towards their … [Read more...]

Support for Mortgage Interest (SMI) – should you take this loan?

Support for Mortgage Interest (SMI) helps people with the cost of their mortgage if they aren't working. It was paid as a benefit from 1948, but in 2018 this stopped. SMI is now only given as a loan that is secured on your house, see the gov.uk page on SMI. How much help does SMI give? If you lose your job, you can't claim SMI for 39 weeks. Many people don't have enough redundancy pay, … [Read more...]

Debt news – 7 February 2021

My pick of last week's news is the Woolard Review. Debt news Review into change and innovation in the unsecured credit market (the Woolard Review) FCA: A report by the FCA's previous CEO. Demanding regulation of BNPL such as Klarna made the most headlines, but it's a lot wider-ranging eg sections on debt advice. Five reasons why the Woolard review hits all the right notes Money Advice … [Read more...]

Amigo’s Scheme – key points to think about

On 25 January 2021 Amigo announced that it is proceeding with the next stage of its proposed Scheme of Arrangement and published the formal Practice Statement Letter (PSL) that describes the Scheme for the customers affected. I have summarised the proposal in Amigo’s Scheme - timetable for approval & how it may work. This article looks at seven points of concern about the Scheme. A … [Read more...]

Debt news – 31 January 2021

A very varied set of articles this week. My pick of last week's news is Amigo announces proceeding with Scheme. Tweet of the week The overwhelming case against cutting Universal Credit: not the pandemic, but the extraordinary cuts to unemployment-related benefits over the last four decades.https://t.co/2PVrbLVBAD pic.twitter.com/2PbwYpMrYo — Jonathan Portes (@jdportes) January 24, … [Read more...]