My pick of last week’s news is the Money and Mental Health Policy Institute’s report on Making free debt advice accessible to people with mental health problems.
Tweet of the week
— Debt Camel (@DebtCamel) July 25, 2020
Portfolio letter – debt advice firms FCA : We are aware that the risk of consumer harm from firms operating the debt packager model is increasing. My comment: Another lovely Dear CEO letter – the FCA is so good at writing these…
Making free debt advice accessible to people with mental health problems MMHPI: Debt advice provider websites should help clients pick the best service for their needs, by clearly outlining information on the level of support they offer and how it is provided.
Lloyds diverts 1,000 staff to help customers in debt as economic crisis deepens Mail: Staff are being encouraged to transfer to the bank’s Customer Financial Assistance team for periods of up to 18 months.
Lack of protection for renters:
- Practice Direction 55C judiciary.uk
- You can’t separate housing from public health, says Shelter’s Polly Neate
- The Government failed renters on evictions – but a House of Lords motion could force them to act iNews
- We join forces with Generation Rent to urge Government to protect renters from eviction StepChange.
Student Loans Company’s new ‘quick repayment’ tool is dangerous and irresponsible, says Martin Lewis MSE: For many graduates, making extra payments doesn’t make any difference to what they have to repay in future and is therefore just flushing money away unnecessarily.
Car finance ‘half way’ scandal that’s leaving people trapped in debt Mirror: section 99 of the Consumer Credit Act, states you can terminate a credit agreement only when you have paid half the total credit… Jo, from Reading, was led to believe it was when she reached half way in time.
- Klarna: We tightened our lending in lockdown BBC buy now, pay later services are the fastest growing online payment method in the UK, growing twice as quickly as bank transfers.
- Klarna is the cool lender getting Gen Z hooked on debt Evening Standard: profits come not from customers… but from retailers, who pay Klarna a slice of each transaction, convinced by statistics showing a 30 per cent increase in the average online store’s orders and a 34 per cent increase in the average spend.
Couple facing bankruptcy and debt collectors after stopping in car park ‘for 15 seconds’ Daily Star: Another message suggested they could be declared bankrupt, have possessions sold at auction and even a court order taken out against their wages.
‘I was refused a mortgage for taking a loan holiday’: City watchdog tells banks they CAN reject loans if you took break Mail: the MoS has found that the Financial Conduct Authority is allowing banks to inspect account data to work out if someone took a payment break.
Benefits & other news
Universal credit earnings calculations unlawful, judge says Guardian: Single mother lost up to £463 a month due to four-weekly pay cycle not fitting rules.
How FOS is handling the pandemic FT Adviser: The Financial Ombudsman Service is playing an increasingly important role in the redress and remediation as a result of Covid-19, having already seen a steady uptick of case referrals due to increasing pandemic-related complaints.
Millions could fall into ‘hidden justice gap’ Law Gazette: A report published by the network, Law For All, highlights an alarming spike in people seeking help from law centres for issues since the country went into lockdown.
200,000 more people may be unable to heat their homes, making them a Covid-19 risk this winter iNews: The Committee on Fuel Poverty, an advisory non-departmental public body, has already recommended that the Government widens the automatic entitlement for the Warm Home Discount Scheme to include low-income families in or at risk of fuel poverty in response to the Covid-19 pandemic.