My pick of last week’s news is the article on “Buy Now Pay Later” deals – a growing problem.
Tweet of the week
1.Just back from ESA appeal hearing for victim of horrific acid attack with 50% burns all over her face and body, is in constant pain and ‘burning sensation’, cannot move, sit or stand for long without pain and of course, there is the trauma. DWP awarded 0 points & fit for work
— Sophie Earnshaw (@sophisabella) April 18, 2019
Is Britain’s £73billion credit card bubble about to burst? Mail: More than one in five credit card firms saw an increase in defaults in the first three months of 2019 – the highest rate for two years, the Bank of England revealed.
- FCA sets out its priorities for 2019/20 FCA: the future of regulation is a key priority in this year’s Business Plan. We will be leading a debate about this with stakeholders so that we can keep pace with the developments taking place in the markets that we regulate and in wider society.
- City watchdog: LCF scandal was ‘unfortunate’ for victims Standard “We [the FCA] must look at what we did and didn’t do.”
- Bailey can’t dodge this LCF bullet Times (paywall) the FCA gave LCF “permissions it needed to sell Isas and approve its own promotions well after it had received warnings and when it had negative net capital and suspicious changes in directors and auditors”
High cost credit:
- Why is QuickQuid going to delete old customer data? my article.
- Britain’s payday loan hotspots revealed as high cost credit addiction sees debts spiral to over £1billion Mail: Total payday lending reached a phenomenal £1.2billion in 2018, according to Financial Conduct Authority figures.
- Doorstep lender Provident Financial’s counterattack has hostile bidder Non-Standard Finance on the defensive Times (paywall) “The level of insults cannot go any further, to be honest”
- Watchdog set for crackdown on ‘guarantor’ lenders as it emerges Amigo ramped up risky lending before flotation Mail: Rapid growth in pilot lending helped boost the size of the firm’s loan book in the run-up to its floatation last summer. But it also led to higher defaults as borrowers struggled to pay the money back.
‘Buy now, pay later’ deals blamed for many of Scottish consumers’ debt problems The Scotsman: Almost half of people who sought advice from CAS over BNPL arrangements did not perceive the arrangement as a form of debt as they would payday loans or credit cards.
Mastercard ruling: almost every UK adult could receive payout Guardian: Lawsuit could benefit 46 million people even if they have never owned the credit card.
Blue Sky Thinking Scotland’s Debt Law Advice Scotland blog: Another consultation on debt, more forewords littered with un-insightful arguments, and soundbites.
Benfits & other news
- Couple with just £2.33 in bank ‘could lose everything’ over Universal Credit row Birmingham News.
- ‘Universal Credit has left me with 1p since January, I’ve gone days without eating… without this food bank, I’d be dead’ Manchester Evening News
Advice desert looms as LASPO kills off social welfare firm Law Society Gazette: Prior to the government removing vast swaths of social welfare law from the scope of legal aid in 2013, the firm had thousands of clients at any one time.
No-fault evictions to be banned in England BBC: A survey of 2,001 private renters by Citizens Advice suggests that tenants who made a formal complaint had a 46% chance of being evicted within the next six months.
Thousands more ATMs will charge 95p to take out cash in a brutal blow to the elderly and those on low incomes Mail: The firm behind a fifth of the country’s free cash machines is to start charging customers nearly £1 a time to take their money out. Notemachine will charge for many of its 10,500 devices following changes to how the ATMs are funded.
The psychology of fraud Radio 4 Moneybox