My pick of last week's news is Klarna's new app. If you don't think it looks important, look again... Debt news DRO regulation changes laid before Parliament gov.uk: These are negative procedure statutory instruments so, unless the order is "prayed against" in Parliament - which is highly unlikely - they will come into force on 29 June 2021. Equifax changes credit scores on the quiet my … [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.
I write a weekly round-up of debt and poverty news on Sundays. There are only kept for a month or two, see Weekly News Summaries.
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...]
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...]
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. This page will be updated when there is clearer news for customers. The approval process for the Scheme - that ended in rejection On 30 March, the First Court Hearing … [Read more...]
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. 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 bothered to claim as the administrators warned the amount could be less than 1p in the £. You will … [Read more...]
Provident Financial Group (PFG) has proposed a Scheme of Arrangement to reduce the refunds it has to pay to customers given unaffordable loans through its Provident Personal Credit (PPC) subsidiary. There are three stages in getting a Scheme approved. Provident is now in the second stage - Voting: On 22 April 2021, the voting arrangements for the Scheme were approved by the court. From … [Read more...]
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...]
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...]
A "Scheme of Arrangement" is in place for borrowers from the Money Shop, Payday UK or Payday Express who were given unaffordable loans. The Money Shop home page says: We have calculated the final dividend amount and you will be receiving 4.31p per £1. Where you provided us your bank details we will commence making payments from 24 May 2021. These payments will be made by BACS. People … [Read more...]
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...]