My pick of last week’s news are the new FCA payment deferral rules and the Low income consumers pay a poverty premium equivalent to thee months’ worth of food report.
We finally have the new FCA payment deferral rules on Mortgages and Other Consumer Credit. The latter have been changed from the original proposals so they are now similar to mortgages – people can have up to 6 months breaks, so if anyone hasn’t had 6 months so far, they can get the rest of the 6 months now.
- My revised articles: Covid-19 – what help with debts & bills can you get?
When mortgage payment breaks end, can you pay your mortgage?
Can you afford your car finance now payment breaks are ending?
From ‘haves’ to ‘have-nots’: how COVID-19 is swelling UK’s subprime ranks Reuters: regulators are paring back those financial lifelines, even as COVID-19 rages anew and some vulnerable citizens despair how they will stay afloat.
- Struggling renters need a lifeline this winter JRF: 700,000 households are already in rental arrears
- Finally, lawful non-evictions Nearly Legal housing blog: Coronavirus has not shown a tendency to shun people with rent arrears, but logical consistency is probably too much to hope for.
- Tory MPs call for social housing boost in spending review Telegraph (paywall): David Davis, the former Brexit secretary, and former deputy prime minister Damian Green are among 16 MPs to have written a letter to the prime minister.
- Stay at home, move house, remortgage? Home loans during the Covid crisis FCA Insight: Should [the decline in low deposit mortgages] continue it risks widening the gap between established homeowners and those hoping to become property owners, between younger and older generations.
- Nationwide ‘open-minded’ on low-deposit mortgages, says boss Guardian: Joe Garner’s remarks come as lender reveals half-year results, including rise in pre-tax profits.
Counting the cost of Covid: one million self-employed pushed into debt due to pandemic HR News: one in four (23%) freelancers have had to take on credit card debt to get by.
Vulnerability, GDPR, and disclosure Money Advice Trust: How data protection, handling vulnerable customers fairly and operational practicality should interact.
Co-op Bank deal spells ‘devastation for customers’, warns MP Mail: “I couldn’t think of a worse bidder. Cerberus have got a terrible track record of how they treat borrowers, and are incredibly aggressive. “
Benefits & other news
Covid: Watchdog shelves plans to protect loyal savers BBC: The FCA said the current economic situation, in which savings rates have been slashed, made this less of a problem.
UK energy bills may rise in spring to help suppliers cover Covid costs Guardian: “The idea that at a time when millions of people are struggling to pay their bills, the solution would be to charge people even more is farcical”
Low income consumers pay a poverty premium equivalent to thee months’ worth of food University of Bristol: People struggling with money are paying an extra £478 for essentials like energy, credit and insurance because of the poverty premium
In schools, we see the extra harm Covid is doing to Britain’s homeless children Guardian: The educational gap between children with a secure home and those without is growing as a result of Covid-19