In September 2014, the Financial Conduct Authority (FCA), which had became the regulator for debt management firms in April, issued a press release warning debt management firms, payday lenders and credit brokers that: "Many firms are falling well short of our expectations and they will need to raise their game if they want to continue operating." Many of these firms currently only have … [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.
In December 2013 there was a judgment in Kaye v South Oxfordshire District Council that business rates for the current tax year should be included as a debt in a Company Voluntary Arrangement even though the company had made all payments to date. The judge commented that the ruling would seem to be equally applicable for council tax bills in personal insolvency. As a result, this year the … [Read more...]
The IVA Standing Protocol Committee meets about three times a year. Part of the committee's remit is to identify problems/issues arising in the operation of the Protocol at an early stage. I understand that the CAB's representative on the standing committee raised the issue of secured loans at their July meeting but no amendments were considered necessary by the majority of the … [Read more...]
In August 2014, the Insolvency Service issued a Consultation on Debt Relief Orders (DROs) and Bankruptcy petition limits. I think there are a lot of problems with the personal insolvency regime in England and Wales (see my article last week about the recent insolvency statistics) and so this consultation provides a welcome opportunity for the Insolvency Service to get industry responses on many … [Read more...]
This week the insolvency statistics for April-June 2014 were published. Company insolvencies dropped 15% on the same time last year - good news as fewer people will have lost their jobs. However personal insolvency numbers were up 5% and the breakdown by the type of insolvency varied significantly: IVAs were up a huge 20% bankruptcies down 16% Debt Relief Orders (DROs) down 2%. Are … [Read more...]
It is expected that the Financial Conduct Authority (FCA) will make an announcement in June 2014 on capping the costs of high-interest, short term credit usually known as payday loans. It isn't clear if this will be a single proposed measure or a range of options leading to further industry consultation. Last November, the FCA was given a duty in the Banking Reform Bill to introduce a cap on … [Read more...]
Over 1,000 people are now using North East Derbyshire CAB's (NEDCAB) award-winning debt advice website to run their own Debt Management Plans (DMPs). Since its launch in 2102, the NEDCAB system has now grown into a comprehensive on-line resource, helping users find the best debt solutions for them and with pages of information e.g. how to complete bankruptcy forms. NEDCAB use the system in their … [Read more...]
Peversely, the rise in the minimum wage of just 19p an hour that came into effect on 1 October 2013, means that some carers will lose £59.75 in benefit. Carers Allowance is a flat rate of £59.75 paid to people who care for someone disabled for more than 35 hours a week. The eligibility requirements are here - one of these is that you can't earn more than £100 a week. Many carers can't work … [Read more...]