Daily update: 18th February On the 13th February, the first payouts for unaffordable Wonga loans were made and continued on the 14th. A very small number of payments were received over the weekend. A lot more payments were made yesterday on the 17th. The payments appear to be in a random order – not alphabetical, by bank, by date of claim, size of claim or by when you received the “4.3% … [Read more...]
Debt news and policy
Debt Camel articles on what's changing and what ought to change in the world of personal debt in Britain.
And for my weekly round-ups of debt and poverty news items, see Weekly News Summaries.
The Financial Ombudsman (FOS) complaint statistics for Oct-Dec 2019 have just been published, see Product Complaints Data. For guarantor loans, FOS decided in favour of the consumer in 90% of cases: this is even higher than the 83% that were won in April-Jun 2019. these figures are a dramatic increase from the uphold rate of only 32% for the 2018 financial year. This … [Read more...]
On 28th January 2020, the Wonga administrators announced that they will be paying all unsecured creditors 4.3% of their agreed Claim. They stated: This is a first and final dividend totaling £23,090,071.32, representing 4.3p in £ on agreed creditor claims of £535,636,017.75. No further dividends are expected to be paid to the Company’s creditors. Most of the unsecured creditors are the c. … [Read more...]
In June 2019, the bank regulator, the FCA, announced its new rules about overdraft charges. It called these: the biggest shake-up to the overdraft market for a generation. Banks have to change their overdraft charging before April 2020. On 22nd January the last of the banks announced how they were changing their rates. And the FCA has now admitted that about 8 million people will be paying … [Read more...]
Many annual reviews say the year has gone by so fast. But it seems like a very long while since I wrote my review of Debt Advice in 2018. 2019 has been very difficult for debt advice. There have been few bright spots (apart from affordability complaints), a lot of delays to policy decisions being taken and an ever-worsening benefits environment for our clients. 2019 - what happened & … [Read more...]
For more than two years the 0% balance transfer credit cards on offer have been getting slowly less good. And there aren't so many, so they are also harder to get. You may have been shuffling credit card debt around for years with not much problem, but it is becoming harder. Less deals on offer & the limits are lower In January 2020 Moneyfacts has counted 76 0% balance transfer … [Read more...]
The Administrators for Casheuronet LLC (CEU) have published their Proposals for how the administration should be handled. CEU went into administration on 25 October 2019. CEU is better known by its brand names: QuickQuid, Pounds To Pocket and Onstride, all major UK payday lenders. If you have a complaint against one of these payday lenders you may have been sent a copy of these Proposals and … [Read more...]
In the last six weeks, Britain's largest payday lender, QuickQuid, went into administration followed by three smaller lenders: 247 Moneybox, PiggyBank and Swift Sterling. Have the lessons from Wonga's collapse last year been leaned? And how can regulators and debt advisers do better in future to protect borrowers, not just of payday loans but other sorts of high cost credit as well? My 6 … [Read more...]
Amigo's half-year results for April-September 2019 show a big increase in complaint costs about its guarantor loans. The majority of these complaints are affordability complaints, by the borrower or by the guarantor. Here is the management presentation on the results. What Amigo says about complaints Here my thoughts on some of the points Amigo makes about complaints in the management … [Read more...]
Many people hoping for a payday loan refund from Sunny were watching for the third quarter results from Elevate, Sunny's US parent. Would Elevate decide to close Sunny, so they wouldn't get their refunds? Two weeks earlier QuickQuid had gone into administration after its American parent announced it was exiting the UK. That left Lending Stream and Sunny as the largest payday lenders in … [Read more...]