An independent review of the Lending Code started in March 2015. The Lending Code is adopted by most of the largest UK banks, building societies, credit card lenders and some debt collectors. Its aim is as follows: This is a voluntary code of practice which sets standards for financial institutions including debt collection and debt purchase firms to follow when they are dealing with their … [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.
After a 20-month investigation into the payday loans market in Britain, the Competition and Markets Authority (CMA) has published its Final Report. Its main proposals, however, appear to have been largely overtaken by recent events. The CMA report proposes increasing price competition between payday lenders in order to help borrowers get a better deal. Payday lenders will have to publish … [Read more...]
Yesterday, 15th January, the Insolvency Service announced increases in two key Debt Relief Order (DRO) limits : the maximum level of debt in a DRO will be increased from £15,000 to £20,000, and the asset limit will be increased from £300 to £1,000. The new levels will be implemented on 1st October 2015. This decision follows the Call For Evidence on DROs issued in August last year, when … [Read more...]
Who on New Year's Eve will be opening the champagne to toast a successful year? And who would rather forget all about 2014? Here is Debt Camel's completely opinionated round-up of the debt world in Britain - the winners and losers in 2014 and what's coming up in 2015. The winners Bailiffs - the knock-on effect of 2013's council tax benefit changes is now being seen by every debt advisor. … [Read more...]
The following league table shows how dramatically the "top IVA firms" have changed since 2010. All firms who have registered more than 500 IVAs in the last year are included, sorted by the last year's figures. (UPDATE : also see the 2016 table and the 2015 table.) Notes: 1) the figures come from Freedom of Information requests to the Insolvency Service except the one marked # see … [Read more...]
The Financial Conduct Authority (FCA) announced on 1st December 2014 that it was banning credit brokers from charging fees to customers from January 2nd 2015 unless they comply with a strict set of conditions. Credit brokers are middlemen - they don't lend money themselves. They can offer to find any length of loan but much the most common target is payday lending. This action is an unusual for … [Read more...]
The Financial Conduct Authority (FCA) has announced details of its study into the UK credit card market. This will look at how lenders and borrowers behave in order to identify what, if any, action the regulator might take. Christopher Woolard, director of Policy, Risk and Research at the FCA said: " We want to understand in more depth what drives consumers to make the choices they do and how … [Read more...]
This is a guest post by Nick Lord. It argues that the new pension rules are a game-changer for debt advisers and that debt advice agencies need to put measures in place to ensure that their advisers can provide best advice post April 2015. Nick is a consultant on money advice and personal finance issues working with Government departments, regulators and firms. His past posts include senior Money … [Read more...]
The FCA announced on the 11th November that it will cap the costs of payday loans from 2nd January 2015: Initial cost cap of 0.8% per day. For new loans, or loans rolled over, interest and fees must not exceed 0.8% of the amount borrowed. So for a one month loan of £100, the interest and fees if the loan is repaid on time cannot exceed £24 If borrowers cannot repay their loans on time, … [Read more...]
On 2nd October 2014 the Financial Conduct Authority (FCA) announced that Wonga had agreed to compensate an estimated 375,000 customers where Wonga's "affordability" checks are likely to have been inadequate. The common reactions were first that Wonga was being made an example of to warn other payday lenders and second that this was a huge number of clients... But is this a fair approach by the … [Read more...]