My pick of last week’s news is Money Advice Trust’s Debt Options in the New Normal.
Tweet of the week
Shame on me, given my job, but only since the pandemic have I really started to understand how threadbare the UK’s safety net has become. Take statutory sick pay. The UK is now at the very bottom of all OECD countries. Even Trump’s America is doing more. pic.twitter.com/PIRLAsiLGs
— Sarah O’Connor (@sarahoconnor_) October 27, 2020
- Mortgage holders need certainty and security in the coronavirus storm JRF: almost 40% of mortgage holders having suffered reduced income due to coronavirus, and almost one in five worried about meeting their housing costs after the lockdown lifts – around 1.3 million households.
- APPG asks FCA to review mortgages guidance to protect those suffering from the second wave of Covid APPG: the feedback from mortgage prisoners trapped on high SVRs and facing the income uncertainty particularly under Tier 2 and Tier 3 restrictions is very worrying
- FCA to announce further support for mortgage borrowers impacted by coronavirus FCA: statement made after the PM announced month long lockdown.
- Why all coronavirus payment breaks need to be extended – my article.
Civil Justice Council launches review of Pre-action Protocols MoJ: The review will look at all aspects of PAPs including their purpose, whether they are working effectively in practice and what reforms, if any, are required.
New breed of pay-day loan firms cash in on pandemic Times (paywall): “Some credit companies view the crisis as a business opportunity,” Stell Creasy MP said.
Barclaycard gives rebates to 1,000s of customers after it ‘may have’ set their credit limits too high MSE: Thousands of Barclaycard customers will receive rebates of £230 on average.
- Bailiffs broke into my house by mistake Times (paywall): he got £5000 compensation for trespass.
- Nurses “hounded” by bailiffs linked to Can’t Pay? We’ll Take It Away over parking fines Mirror: As frontline nurses work long hours battling the coronavirus pandemic, bailiffs from DCBL (Direct Collection Bailiffs Ltd) are threatening them with court action for parking at the hospitals where they work.
- Debt clinics help Camden families but contract with collection firms extended Ham & High: Camden Council has renewed its deal with a three debt collection firms who were rebuked last year for “confusing and intimidating” letters to people who owed the town hall cash.
The man who wants to help you out of debt – at any cost Guardian: Millions turn to financial guru and radio host Dave Ramsey for his ‘tough love’. Many say he saved their lives. Critics say he ignores the structural reasons so many are in debt and poverty.
Debt options in the New Normal Money Advice Trust: We recommend that the Government commissions a full review of the debt
options available to be people in financial difficulty – with a list of changes a review should consider.
New financial inclusion report shows growing gulf between savers and those with debts amongst UK households University of Birmingham: COVID-19 has led to an increase in already high levels of anxiety about finances with an estimated 4.6 million people now in arrears on household commitments totalling around £6 billion.
Benefits & other news
Experian: Credit agency told to stop sharing data without consent BBC: The ICO found that Experian and two other credit reference agencies – Equifax and TransUnion – did a significant amount of “invisible” processing of data, meaning that people did not know it was happening.
Britons’ support for welfare benefits at highest level for 20 years – study Guardian: Annual survey finds ‘dramatic softening in attitudes’ even before Covid pandemic.
Disabled person handed £1,200 in Universal Credit sanctions during lockdown The Big Issue: The Government suspended benefit sanctions during lockdown, but people with pre-existing sanctions continued to have money taken from them.
Only 3% of problem gamblers in UK get help, says study Guardian: Report shows devastating effects on finances, relationships and careers ahead of government review.