My pick of last week’s news is the FCA extending deferrals for credit cards and loans.
Tweet of the week
This is not like a Tesco loyalty scheme, is it?
GVC admitted in House of Lords testimony that 38% of ALL deposits come from these schemes (1.4 % of customers).
Would we accept state supported home deliveries of vodka to alcoholics? https://t.co/PAhGACJ9J2
— Matt Gaskell (@mgaskell12) June 20, 2020
FCA announces proposals to further support consumer credit customers FCA: This is for credit cards, overdrafts, loans (not payday or car finance.) TLDR – another 3 months deferrals for people who need them, pay something if you can and although it won’t affect your credit score lenders may be able to see you have taken a deferral.
- Further help on overdrafts, loans and credit cards planned for those hit by coronavirus MSE’s good summary.
2 months left to help renters Citizens Advice: Leaving it up to voluntary agreements between landlords and tenants isn’t working.
A financial system to support the recovery FCA: Speech by Charles Randell. “we need a robust framework for dealing with small business loans which turn out to be unaffordable”
- Lenders told to brace for wave of disputes on £38bn of coronavirus debt Times (paywall): Regulators are on red alert after a survey of small and medium-sized businesses found that 43 per cent did not expect to pay the money back, either because they could not afford to or because they thought that they would not be pursued for it.
‘We’ve been forced into debt’ – jobless life in the UK under lockdown Guardian: Four workers describe how they’ve coped since losing their jobs as the pandemic hit.
Nearly two thirds of families on Universal Credit stuck in debt ‘nightmare’ LocalGov: Two charities have called on the Government to increase the child element of Universal Credit by £20 to help struggling families ‘stay afloat’ during the Covid lockdown
- The new mortgage crunch Times (paywall): Fears of an impending house-price crash, a backlog of viewings and worries over borrowers who have stopped making repayments have thrown the mortgage market into turmoil.
- Nationwide caps mortgage lending due to virus BBC: now 15% min deposit.
- Payment holiday uncertainty may bite buy-to-let clients FT Adviser: “If it turns out that [talking a deferral] will impact an applicant’s ability to apply for a mortgage in the future, I would expect to see complaints submitted.”
- Rising Seas Threaten an American Institution: The 30-Year Mortgage New York Times: Climate change is starting to transform the classic home loan.
How Pardners work – friends save & borrow in an informal club a guest post on Debt Camel – ROSCAs are little talked about in the UK.
‘Having my identity stolen cost me £10,000’ BBC: She discovered she’d become a victim of ID theft when she was refused a mortgage over a payday loan in her name that she knew nothing about.
Londoners have cancelled more direct debits than any other UK region, according to a payments firm Sun: A study has found one in five of those in the capital have already cancelled some of their non-essential monthly payments, and a further 26 per cent are thinking about it.
Ashamed Of Your Debt? Talking About It Is The First Step To Tackling It HuffPo: “We talk about sex more than we talk about money,” says Bola Sol, financial wellness coach and founder of the Rich Girl Chronicles. “You have to question these things. I don’t get it.”
Benefits & other news
Over 100,000 kids miss out on maintenance after system ‘abused’ during lockdown Mirror: After the DWP told parents it will take at least three months to probe their cases, one woman told how an adviser said she should contact her violent ex directly to ask for cash.
Financial inequality: the ethnicity gap in pay, wealth and property Guardian: Data shows that people of colour are worse off than white counterparts and black households face the biggest deficit.
Poorer U.K. Workers Most Likely to See Income, Hours Reduced Bloomberg: …adding to evidence that the crisis may be exacerbating economic inequalities.
The homeless man who’s helped 10,000 families in poverty Wales Online: Boomerang will provide a basic package to those in need, which includes a bed, a sofa, a crockery starter pack, a kettle, a toaster and a microwave. Paul also checks to see if families require other things like an ironing board, toiletries, lamps or mirrors.