The Financial Ombudsman Service (FOS) published its Annual Review this week which highlighted the massive jump in payday loan complaints - up 130% to c.40,000 in 2018-19. The Consumer Finance Association (CFA) has responded with a blog Reflecting on the FOS Annual Review. The CFA is the trade association for payday lenders, so you won't be surprised they are not happy... Mandy Rice-Davies's … [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.
And for my weekly round-ups of debt and poverty news items, see Weekly News Summaries.
In 2017, the FCA launched a PPI advertising campaign telling you to make a decision about claiming PPI, because a deadline was being introduced. That August 29 2019 deadline has now passed and you can't start a new PPI complaint. If you have a complaint already in progress, the MSE forum is a good place to ask questions about it. And if your complaint has been rejected, send it to the … [Read more...]
Guarantor loans are coming into the regulatory spotlight. The FCA wrote to CEOs in March 2019 saying it will be looking at affordability and whether potential guarantors have enough information to understand how likely it is that they may have to make the loan payments. In a speech, Jonathan Davis said: Recent work we have done in this area showed that many guarantors are making at least 1 … [Read more...]
New statistics for July-December 2018 from the Financial Ombudsman (FOS) show how payday loan complaints have jumped in the second half of 2018 and give details for how many complaints the larger lenders had. Almost all these cases are affordability complaints where a customer was given payday loans without proper affordability checks and is asking for a refund of interest paid. The … [Read more...]
QuickQuid has told some customers that it plans to delete loan data over seven years old with effect from today, 15th April 2019. It says this is to comply with its legal obligations. QuickQuid has sent emails to the affected customers asking if they would like a copy of their data before it is deleted. It seems to me that this new policy is not in the customers' interest because it will … [Read more...]
In April the Wonga Administrators published the new Online Claims Portal. This lets current and previous Wonga customers in the UK submit a claim for a refund for unaffordable loans. The Online Claims Portal will close at the end of September, so all claims should be submitted before then. The Administrators have given a set of FAQs. What is the form for? The form has two main … [Read more...]
The Wonga Administrators’ six month progress report to end February 2019 was emailed to creditors on 27 March 2019. The creditors include the so-called "redress creditors". These are the customers who complained to Wonga saying they were given unaffordable payday loans. Collecting outstanding loans When Wonga went into administration, the Gross Loan Book totalled £77 million. So far … [Read more...]
For two years the 0% balance transfers on offer have been getting slowly less good. Here is how they have been falling over the past two years: back in May 2017, you could have got a 43 month deal in May 2018 there were 37 month deals on offer in February 2019 the longest offer was 32 months in March 2019 that had dropped to 29 months in June 2019 29 months is still the longest … [Read more...]
In February, Nicky Morgan, who chairs the Treasury Committee, said: It cannot be right that over 10,000 people who may have been mis-sold loans are just cast aside, especially as many will be vulnerable consumers. The Wonga administrators replied, saying: The total number of redress claims is currently more than four times the number you referred to in your press statement on 26 February and we … [Read more...]
The FCA has published its Portfolio Strategy Letter to firms providing high cost lending. This was sent on 6 March to firms that provide: guarantor loans (eg Amigo) payday loans high-cost unsecured subprime loans home-collected credit (eg Provident) logbook loans pawn-broking rent-to-own (eg Brighthouse). This letter doesn’t cover overdrafts, subprime credit cards or … [Read more...]