My pick of last week’s news is PayPal takes aim at Klarna.
- ‘Mortgage timebomb’ warning: Fears lenders are set to crack down on remortgaging and first-time buyer loans as economic gloom worsens Mail: Millions of mortgage holders in Britain are up for renewal in the next 12 months with changed circumstances.
- The return of the interest‑only mortgage (Times (paywall): Lenders are becoming more flexible with homeowners who need some mortgage help.
- Can you afford your car finance now payment breaks are ending? my article.
- Covid: ‘I don’t want them to take my cab’ BBC article on business finance
UK banks plan to hike cost of credit card borrowing Guardian: banks raised the cost of credit cards in the third quarter and planned to continue increasing average interest rates in the fourth.
Buy now pay later credit:
- Privacy watchdog to probe Klarna after email backlash BBC: “Now why would Klarna have ‘accidentally’ sent me their newsletter when I have never used their services. Who sold them my email?”
- PayPal takes aim at Klarna with ‘Pay in 3’ service for UK shoppers CNBC: The company has grown customer accounts by 300% year-on-year in the second quarter and now has more than 24 million active users in the U.K., dwarfing Klarna’s almost 10 million customers in the country.
High cost credit:
- Hedge fund Elliott seeks Perfect Home for rent-to-own retailer Sky: Sources said that PerfectHome was close to launching a cash loan product to some of its customers, a move that they added could make the business more attractive to potential buyers. My comment – that plan worked so well for Brighthouse…
- Mr Lender is reviewing its loans from 2014-20 for affordability my article.
Possibility of NatWest selling Ulster Bank’s entire €20.5bn loan book ‘gravely concerning’ Independent.ie : “There are no talks taking place with Cerberus,” a NatWest spokesperson said.
Coronavirus has hit household budgets — government action can help avoid a debt crisis Citizens Advice: Our data shows how people in debt are struggling to make ends meet.
MPs pursue claims bank signatures were faked on UK court papers Guardian: The all-party parliamentary group on fair business banking said it was supporting the campaign as its members “receive frequent and consistent representations from constituents with concerns over the possible forgery of signatures”.
- A week in the life of… a debt and benefits advisor Inside House: It’s mostly about benefits.
- How digital affordability and Open Banking is revolutionising debt advice OpenWrks blog: Last Wednesday we went live, working with MaPS to provide digital affordability assessments as part of their digital enhancement to debt advice. My comment: ignores the many problems that debt advisers find about this approach to advice.
Graduate invoices £41k student debt bill to Rishi Sunak Basildon Echo: Outraged by the Chancellor of the Exchequer’s suggestion that “musicians and others in the arts should retrain”, graphic design graduate Luke Osborne asked him for a refund on his degree.
What Happens After a Debt Collection Machine Grinds to a Halt ProPublica [American article]: One year ago, Methodist Le Bonheur hospital system erased nearly $12 million of medical debt after an investigation from MLK50 and ProPublica.
Benefits & other news
MAKING HIS MARC Marcus Rashford petition urging Government to give free school meals during half-term and Christmas holidays hits 250k Sun: The petition comes in reaction to Downing Street saying kids won’t get free school meals over the half-term break and Christmas holidays.
Shops could be the cash machines of the future under new plans – but the retail sector is concerned Sky: The government’s wider proposals include giving the Financial Conduct Authority (FCA), oversight of the retail cash system to protect small and medium-sized businesses in addition to its current obligations to the consumer.
Covid: UK ‘faces period of destitution’, warns Louise Casey BBC: “It’s like you’re saying to people, ‘You can only afford two-thirds of your rent, you can only afford two-thirds of the food that you need to put on the table.”
Child poverty increases in England across the north and Midlands Guardian: Charity analysis says most striking increases have been in Middlesbrough, Newcastle and Birmingham
BAME Workers In London Earn 24% Less Than White People HuffPo: Ethnicity pay gap continues to plague England and Wales, new data show, with the capital worst affected.