My pick of last week’s news is the proposed Scheme from Provident.
Good news of the week is High Court rules DWP’s universal credit deductions policy unlawful.
- FCA urged to act as lender bids to cap payouts to poorest borrowers Guardian: Critics say lender’s plan could enrich directors while poor borrowers miss out over mis-selling claims.
- Regulatory update the investigation by the FCA into Amigo’s affordability assessments has now been extended to cover their complaint handling.
Provident announces a Scheme:
- Provident proposes a Scheme to cap refunds my article
- Provident’s Scheme – will customers get less than 2% ? my article
- Provident plan to cap doorstep lending compensation BBC: One 52-year-old, who borrowed with Provident for 30 years, said he had taken loans totalling £60,000 but it was a “vicious circle” and he had made a claim for mis-selling, but had been rejected.
- Provident boss is playing hardball Times (paywall): Responsible lending involves facing up to past liabilities, not finding a wheeze to wriggle out of them, especially when the casualties are the poorest borrowers around… If Provident’s not set on trashing its reputation, it should pay up. This sort of carry-on is as subprime as the business.
- Provident’s scheme spells the end of the local doorstep lender FT (paywall): Subprime group tries to cap liabilities as regulatory tide turns against model.
High Court rules DWP’s universal credit deductions policy unlawful Shelter: The court ruled that by setting a fixed rate for deductions from UC for fines, and the DWP’s inflexible approach in making decisions on these cases, removes the discretion provided for in the relevant legislation. This is unlawful.
Greensill collapse sparks fears for pay scheme used by cash-strapped NHS nurses Standard: There is some doubt over who would take on that [NHS] contract given the financial sector’s post-Greensill wariness of such activities.
Covid Debt Rescue StepChange report: We are calling on the Government to provide an emergency support package to help renters.
‘Oversight failure’: Over 14,000 get £10m compensation over collapse of SIX Scots community banks The Herald (maybe behind paywall): Mr Keenan said there needed to be urgent action taken to ensure credit unions are properly scrutinised, but also supported to allow them to stay afloat.
Benefits & other news
Energy credit to be automatically returned under new plans – and it could be worth £65/household MSE: Energy suppliers will be forced to automatically refund in-credit balances each year and will have limits placed on the size of customers’ balances under new [Ofgem] proposals.
Nine in 10 councils in England see rise in people using food banks Guardian: Local authorities reveal devastating toll of coronavirus on households who have struggled to keep a roof over their heads
Online investing and gambling – an increasingly blurred line? Bristol University blog: The blurring of investing and gambling poses challenges for regulators and businesses that are responsible for protecting consumers from harm.