Interesting statistics this week – the Monthly Insolvency Statistics and StepChange’s Personal debt statistics in 2020.
Commentary – Monthly Insolvency Statistics March 2021 gov.uk Once again IVA numbers are up on a year ago and DRO and bankruptcy are well down.
- Household debt ‘kicked down the road’ by Covid support, warns charity Big Issue: Emergency pandemic support inspired a “wait and hope” approach to debt, but thousands could be left without support when measures are rolled back this year
Barclaycard – more big cuts to credit limits my article, highlighting the potential unexpected impact of credit scores
- Barclaycard cuts customers’ spending limits by more than 85% out of nowhere without explanation despite never missing payments Mail: with interesting statistic that “The average UK credit limit fell by 49 per cent from January to December last year”
Klarna clampdown due within weeks as Treasury prepares to impose stricter rules on Britain’s £2.7bn booming ‘buy now, pay later’ sector Mail: A consultation on draft regulation affecting platforms like ClearPay, Klarna, Laybuy and PayPal is expected to be published in early May, after an amendment to credit legislation was passed in parliament this week.
- Natwest and Barclays reveal 95% mortgage guarantee rates ahead of scheme launch on Monday Sun: BatWest: a two-year fixed rate at a 3.90% interest rate and a five-year fixed deal at 4.04%.
- House of Lords votes in favour of interest rate cap for mortgage prisoners MSE: an SVR cap isn’t a balanced long-term solution. But in lieu of anything else, I believe for those on closed-book mortgages it is a good stopgap while other detailed solutions are worked up – so this vote is an important move.
Tax raids target poorest families on universal credit Times (paywall): HMRC said that between April and December 2020 it sent 137,059 letters to warn universal credit claimants they would have payments cut because of tax credit overpayments from as long as 17 years ago.
GPs to prescribe debt intervention in new approach to social prescribing Financial Shield: Financial Shield is designed to drive improvements in people’s health trajectories, financial situation and debt repayment, and bring tangible cost savings to the NHS, through reduced use of NHS appointments and admissions. The pilot will include a cost benefit analysis to measure outcomes and an independent review to encourage a national roll-out.
Benefits & other news
About 700,000 renters served with ‘no-fault’ eviction notices since start of pandemic Guardian: Shelter chief executive says private renters in England are living ‘at the mercy of a broken and unfair system’
Gambling Act review: A chance to make gambling safer by design MMHPI: Avoiding a problem and low motivation are common experiences for people with mental health problems which can make stopping even harder.
Haunted by shame: victims of bank transfer scams tell of lasting trauma Guardian: Fraud can have devastating consequences on victims, and not only financially