Many people are making affordability complaints about payday loans, asking the lender to refund interest. Until now, lenders have refused to look at any refunds for payday loans that were taken out more than six years ago, saying the Financial Ombudsman will not consider these cases. Earlier this year there seemed to be some inconsistent decisions from the Ombudsman as to whether their rules … [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.
On 2nd November, the FCA announced that MotorMile Finance UK Ltd (MMF) had agreed to provide redress to more than 500,000 customers for "historic failings": The firm had inadequate systems and controls over due diligence. In particular, it failed to conduct sufficient due diligence upon the purchase of a debt portfolio to be satisfied that the sums due under customer loan agreements were correct. … [Read more...]
On 1st November, the Registry Trust published the statistics for CCJs in the third quarter of 2016, saying: Consumers in England and Wales are facing a decade-high level in the number of CCJs. ... There was a year on year increase nearing 50 percent in the third quarter of 2016, with more than a quarter of a million (256,847) judgments registered against consumers in England and Wales. This … [Read more...]
The FCA says that over a hundred debt management firms who applied for authorisation have been refused or have withdrawn their application. In September 2016, Debt Clever became one of these firms. Some firms that are closing are looking for ways to continue to make money from their clients. My previous article, Why the FCA should ban the Compass debt advice model, has some examples. This … [Read more...]
Following an Appeal Court ruling on Horton vs Henry, published in October 2016, pensions are once again safe if you go bankrupt. The full judgment is here. The background to this case was: before 2000, pensions formed part of a bankrupt's estate and would be taken once the bankrupt reached pension age; the Welfare Reform and Pensions Act changed this. For people going bankrupt after … [Read more...]
Aperture have now become the second large IVA firm in 2016 to be offering some IVA customers an "early exit loan". These loans will be provided by Sprout Loans. This follows the Creditfix / Perinta loans which started in July 2016. My verdict on the Creditfix / Perinta loans was that they are expensive, risky and many people in IVAs should avoid them. So are these Aperture / Sprout loans much … [Read more...]
IVAs are the most common form of personal insolvency in England. There were more than 12,000 IVAs started in the second quarter of 2016, 42% higher than the same period in 2015. Clear Debt has recently stated: Individual Voluntary Arrangements) (IVAs) have become the procedure of choice for those people who have debts they can’t pay and a regular income to enable them to make contributions to … [Read more...]
Some people have been told they can end their IVA by taking an "early exit loan" from Perinta Finance Ltd, via a broker called Just Lending. Creditfix, the biggest IVA firm in 2016, are sending these emails, but the loan may be available to people in IVAs with other firms. This is a new concept for IVAs. Is it a good one? This will depend on the details of your particular situation, but this … [Read more...]
A reader who had gone bankrupt recently was surprised to get a letter from "The Register of Bad Debtors". This offered to remove her name from their records if she pays them £49.95. She asked if BadDebtor can really do this? There are also reports that people with IVAs are receiving similar letters. UPDATES August 21 - the Bad Debtor home page has been replaced by an abstract moving graphic … [Read more...]
The deals available on 0% balance transfer cards got better - longer and cheaper - throughout 2016. Now in February 2017 you can get a 43 month deal if you pay a hefty fee or you can get a 26 month deal with no fee at all. If you have a good credit rating, there has never been a better time to refinance that expensive credit card debt. In contrast,there are now a lot fewer cash back offers … [Read more...]