Lots of news about Schemes of Arrangement this week, including the “no news” from the Amigo court case on Wednesday.
Tweet of the week
#NationalNumeracyDay – so conflicted.
Being better with numbers won’t help if you’re in the >45% of debt advice clients with negative disposable income even after budgeting advice and income maximisation.
— Gareth McNab (@McnabGareth) May 19, 2021
Commissioning Debt Advice in England – Market Engagement Webinar MAPS: My comment – how are tenders possible with no clear guidance on the face to face provision that is required?
Schemes of Arrangement:
- Provident Scheme – how to vote & what you might get my article
- Money Shop Scheme starts paying out – customers will get 4.31% my article
- Amigo – second court hearing was on 19 May when the FCA opposed the Scheme being approved. The judgment has not yet been given.
- Amigo shares resumed trading on 21 May Stock Exchange
- Amigo shares plummet 34% amid fears over compensation case Guardian: Investors concerned sub-prime lender could collapse if a UK court rejects cap on customer payouts.
Commentary – Monthly Insolvency Statistics April 2021 Insolvency Service: Bankruptcies and DRO numbers were both lower than in April 2019 (pre-pandemic) by 46% (bankruptcies) and 40% (DROs). IVAs were 11% higher.
Homebuyers face veto as loan caps hit mortgages Times (paywall): If prices do not cool, lending limits imposed by the Bank to stop households getting over indebted “would certainly begin to have a stronger impact”.
The hidden harm of financial abuse FCA Insight: The fact that financial abuse is so well hidden and that its victims are, by the very nature of their situation, often invisible to the financial services sector and regulators cannot be a reason for inaction.
- Councils: Government must `retreat carefully´ when easing Covid support measures Mail: The District Councils’ Network (DCN) said removing support too quickly risks derailing the national recovery and a surge in households unable to pay their bills or rent.
- Landlord fined for dumping tenant’s belongings in the street and changing locks Metro: On top of his fine [of £416], Mr Klibavicius also has to pay £650 in compensation to Mr Danilevicius and £1,283 in court costs.
- Bristol Uni threatens to set private debt collectors on rent striking students The Bristol Cable: “we’ve been routinely promised that rent strikers would not face adverse punishment for our protest against the university’s handling of Covid, yet this move is an aggressive push from the uni to frighten us into paying.”
Benefits & other news
Accidental savers ‘to stay prudent’ after lockdown BBC: The risk and uncertainty highlighted by Covid meant many were keen to build a financial cushion.
How the vulnerable lost their life savings while regulators stood by Independent: Currently, loopholes in the rules and a patchwork of different enforcement agencies allow investment fraudsters to operate with little fear of being held accountable when money vanishes.
News round-ups are published every Sunday.
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