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Debt news and policy

Debt Camel articles on what's changing - and what ought to change - in the world of personal debt in Britain.

If you are interested in a specific area, look at: High cost credit news & policy and Insolvency news & policy.

“Lower interest if your credit score improves” – a good idea?

Many people are frustrated by only being to access expensive credit. Their financial problems may be years in the past, but they still cannot borrow at a reasonable rate. The FCA's Woolard Review said in January 2021: Products or business models which aim to help consumers bridge from sub-prime to near-prime or mainstream have an important role to play in expanding access to credit, and … [Read more...]

April 8, 2021 Author: Sara Williams Tagged With: Credit ratings, High cost credit news/policy

Will Amigo’s Scheme reject too many claims?

This article relates to Amigo's first Scheme, which was rejected in May 2021. In December, Amigo published details of its proposed new Scheme. See Amigo's new Scheme for the latest news. Surprise, surprise, the new Scheme also gives no details about how many claims may be upheld. In 24 March 2021, Amigo announced some feedback from the Financial Conduct Authority (FCA) on its proposed … [Read more...]

March 31, 2021 Author: Sara Williams Tagged With: Amigo, Schemes of Arrangement

Amigo should end unpaid interest deductions and remove CCJs

This article relates to Amigo’s first Scheme, which was rejected in May 2021. Amigo's second scheme was approved in May 2022. See Amigo's Scheme for details. The good news is that Amigo has agreed to remove CCJs in the second scheme. The bad news is that it has retained the unfair "deductions for unpaid interest" which it is calling "reinstated interest". I asked Amigo about some details … [Read more...]

March 27, 2021 Author: Sara Williams Tagged With: Amigo

Provident’s Scheme – will customers get less than 2% ?

Provident is proposing a Scheme of Arrangement to limit the refunds it has to pay to customers making affordability complaints about provident doorstep lending and Satsuma payday loans. UPDATE the Scheme was approved in August 2021. See Provident's Refund Scheme for how it works and how a customer can make a claim The £50m the company is putting up to pay refunds is not nearly enough to pay … [Read more...]

March 17, 2021 Author: Sara Williams Tagged With: High cost credit news/policy, Provident, Schemes of Arrangement

Chief Ombudsman Caroline Wayman resigns

Caroline Wayman, the Chief Ombudsman and CEO at the Financial Ombudsman Service (FOS) has resigned, announcing on 10 March 2021 on LinkedIn that: After 22 years at the service and nearly 7 years as chief executive and chief ombudsman I am stepping down from the role.  Her resignation comes the day after a highly critical article in the Daily Mail which pointed out: Fraud victims and cheated … [Read more...]

March 10, 2021 Author: Sara Williams Tagged With: FOS, General news & policy

Amigo & Provident complaints soar – new Ombudsman data

On 3 March 2021, the Financial Ombudsman Service (FOS) published two sets of statistics. quarterly data for October-December 2020 summarises the types of complaints FOS has received. half-year data shows which firms had the most complaints in July-December 2020 and how often FOS upheld the customers' cases. Caroline Wayman, the FOS CEO says: "Excluding PPI, new complaints are up by … [Read more...]

March 3, 2021 Author: Sara Williams Tagged With: Amigo, FOS, High cost credit news/policy, Provident

Amigo’s 1st Scheme – key points to think about

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo's second Scheme for the latest news. On 25 January 2021 Amigo announced that it is proceeding with the next stage of its proposed Scheme of Arrangement and published the formal Practice Statement Letter (PSL) that describes the Scheme for the customers affected. This article looks at seven points … [Read more...]

February 2, 2021 Author: Sara Williams Tagged With: Amigo, High cost credit news/policy, Schemes of Arrangement

Amigo – many customers may do better in Administration than a Scheme!

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo's second Scheme for the latest news. When Amigo announced it was proposing a Scheme of Arrangement in December, it said: Amigo continues to explore alternative options but it is likely the alternative options would result in those with Redress Claims receiving considerably lower amounts (if any at … [Read more...]

January 24, 2021 Author: Sara Williams Tagged With: Amigo, High cost credit news/policy, Schemes of Arrangement

Is Amigo allowed to delay paying refunds? Does it have a DISP waiver?

This article relates to Amigo’s first Scheme, which was rejected in May 2021. See Amigo’s Second Scheme for the latest news. When Amigo announced in December 2020 that it was seeking a Scheme of Arrangement to cap the amount it has to pay to customers owed refunds for unaffordable lending, it said: To ensure equal treatment of customers with Redress Claims, Amigo will stop the ongoing … [Read more...]

January 20, 2021 Author: Sara Williams Tagged With: Amigo, High cost credit news/policy, Schemes of Arrangement

Lessons from Amigo & Provident – FOS needs to be faster

In administration, customers with complaints at the Financial Ombudsman (FOS) have them returned to the administrators to resolve. The same happens in a Scheme of Arrangement which has been proposed by Amigo in December 2020 and by Provident in March - there FOS complaints are returned to the Scheme to be determined. FOS said in January 2021 it had about 13,000 open Amigo cases and about 500 … [Read more...]

January 14, 2021 Author: Sara Williams Tagged With: Amigo, FOS, High cost credit news/policy, Provident, Schemes of Arrangement

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