My picks of last week’s news are Klarna plans to tell credit agencies if repayments fail and, for people interested in debt policy, the Consumer Bankruptcy Reform Act of 2020 being proposed in the USA.
Tweet of the week
If you’re a debt adviser – and even if you’re not – please consider supporting this letter to create a better ‘breathing space’ for those struggling with debt in the times ahead. #breathingspace #debt @responsiblecred https://t.co/S12pyGseAm
— michael sheen (@michaelsheen) December 12, 2020
- Klarna plans to tell credit agencies if repayments fail BBC: Mr Marsh, [Klarna’s UK Lead], also said deferred payments services like Klarna should be regulated by the UK’s Financial Conduct Authority (FCA).
- Fury as Love Island stars plug ‘buy now, pay later’ site Klarna getting Brits into debt Sun.
- We are millionaire mortgage prisoners Times (paywall): A couple are outraged (“kicked in the teeth”) their bank won’t give them a new large, cheap interest-only mortgage.
- We didn’t realise our Nationwide mortgage holiday had ended… and then nearly lost our new home due to a missed payment Mail: They had asked to extend their mortgage holiday in summer, but did not realise that Nationwide had set it up as two separate stints and they would need to make just one month’s payment in July before going back on a break in August.
Banks ‘too often blaming customers’ for fraud BBC: when it comes to complaints about this type of fraud [the Financial Ombudsman] backs consumers in three quarters of cases.
New course for 2021 – Affordability Complaints IMA (free sector debt adviser access only): This course explores the developing area of affordability complaints. These started in 2015 for payday loans and are now being made about a wider variety of credit.
Millions of Brits could be in line for payouts of up to £300 EACH after Mastercard loses landmark £14bn Supreme Court case Mail: The US card provider this morning lost a legal fight with former financial ombudsman Walter Merricks, who had claimed consumers had paid higher prices between 1992 and 2007 due to higher card transaction fees which were later declared unlawful.
USA – Warren and Nadler Introduce the Consumer Bankruptcy Reform Act of 2020 Elizabeth Warren: The Consumer Bankruptcy Reform Act of 2020 would simplify and modernize the consumer bankruptcy system to make it easier for individuals and families forced into bankruptcy to get back on their feet.
Benefits & other news
Scrap Bedroom Tax To Save Lives, Urge Government’s Scientific Advisers HuffPo: Sage group also suggests suspending benefit cap and “no recourse to public funds” status to help people self-isolate from Covid-19.
Black staff at Lloyds are paid 20% less than their peers, bank reveals Guardian: Lender releases data as part of race action plan, and says gap is due to lack of black staff in top roles.
Households being benefit capped rises again to 170,000 Shelter infographic.
Destitution in the UK JRF: Recommendations include: Establish a targeted grant programme to support private and social renters who have fallen into arrears which they will otherwise struggle to pay back.
Government launches review to ensure gambling laws are fit for digital age gov.uk: Protections for online gamblers like stake and spend limits, advertising and promotional offers and whether extra protections for young adults are needed will all be explored.