In March 2017, the Court of Appeal decision in the Green v Wright case was published: Mr Wright's IVA firm was allowed to collect PPI after his IVA ended, even though he hadn't consented to this before his completion certificate was issued. As questions about this continue to arrive, I thought it would be useful to summarise the current situation: what is clear and what is less clear. The … [Read more...]
Debt news and policy
Debt Camel articles on what's happening in the world of personal debt in Britain.
For my collections of other news items, please see Weekly News Summaries.
Wonga has started contacting 245,000 customers on 8th April 2017 by email to warn them their personal and financial details may have stolen. Professor Alan Woodward, a cybersecurity expert, said it was "looking like one of the biggest" data breaches involving financial information in Britain. A few days later it also started sending out text messages. This problem isn't just affecting people … [Read more...]
Mr D asked: I was contacted by company called Creditfix to clear my debts in an IVA. I have about £30,000 debt (two loans, some credit cards, overdraft) and the advisor calculated my options. I was told 2 and half years of paying £150 a month, then get a £4,500 loan to pay rest. Is that ok??? * I don't know if an IVA is a good option for Mr D. He needs to decide if he can commit to the IVA … [Read more...]
In March 2017 the Pre Action Protocol for Debt was at long finalised, it's here: Debt PAP. It comes into force on 1st October 2017. It has taken many years of negotiations, consultations and delays to get here. I've asked a couple of experts for their reaction to the news. Tim Lett, who has been involved for the last four years in getting this protocol agreed, writes: I am very … [Read more...]
Far too many people still have bailiff problems, despite the new bailiff rules, known as Taking Control of Goods, that were introduced three years ago in 2014. Seven charities - AdviceUK, Christians Against Poverty, Citizens Advice, Money Advice Trust, StepChange , The Children’s Society and Z2K - have just published Taking Control: The need for fundamental bailiff reform, looking at the sorts … [Read more...]
Here is the League Table for IVA firms last year, showing all firms that registered more than 500 IVAs in 2016. The data comes from the Insolvency Service, it was supplied to Louise Yates. I previously published a half-year table for 2016 - this article replaces that one now the information for the full year is available. The previous statistics for 2015 were discussed here. The up/down … [Read more...]
On 2nd March the FCA announced two new rules for PPI complaints: a deadline is set of 29 August 2019. Any complaint about PPI mis-selling must start before this date. paying too much commission is unfair. Most people paid more than 50% commission and will now be able to get refund of some of their PPI payments. These complaints are sometimes called "Plevin complaints". Complain before … [Read more...]
I thought it would be interesting to bring together recent news items about various types of high cost lending in Britain. I will be keeping this page updated. Payday loans Apr 2017 Major loss of customer data by Wonga - my reaction: Advice for the 245,000 Wonga customers whose details may have been stolen. Apr 2017 CFO Lending goes into administration - affecting hundreds, possibly … [Read more...]
In November 2016. the FCA issued a very broad Call for Input on High Cost Credit. In November 2014 when the price cap and other payday lending rules were announced, it was stated that they would be reviewed after two years and this new Call for Input is part of that review. Andrew Bailey, Chief Executive of the FCA, said: We have come up to the point of reviewing the cap on payday lending, … [Read more...]
My pick of last week's news is the Financial Ombudsman's newsletter, with some very interesting case studies. Graphic of the week Debt news Sub-prime cars: are car loans driving us towards the next financial crash? Analysts fear the boom in personal contract plans are mirroring the sub-prime mortgage scandal and are fuelling a colossal build-up of debt in UK and US. More … [Read more...]