A bumper edition today – 2 weeks worth (I have been on holiday for a week!) and they have been two very busy news weeks.
FCA confirms the next stage of support for mortgage borrowers FCA: As expected the FCA has confirmed its proposals that no mortgage payment breaks have to be offered after 31 October, largely disregarding debt advice agency feedback.
FCA proposes the next stage of support for consumer credit and overdraft customers FCA: it is proposing that as for mortgages, no new payment breaks have to be given, instead normal forbearance and credit reporting will apply.
- MAT’s response: FCA consultation on draft additional guidance for firms on consumer credit, overdrafts and coronavirus “[it] leaves it open to firms to interpret their ability to be flexible and what forbearance options they offer in practice.”
New job support scheme;
- Wage subsidies welcome but ‘equally bold’ action needed on household costs Money Advice Trust.
- ‘Who knows what’s around the corner?’ Bolton and Crawley react to Sunak’s plans Guardian.
Negative interest rates: Bank of England policymaker defends plan BBC: In September [the Bank of England] said that it would take a detailed look at how negatives interest rates might work in practice during the last three months of the year.
- Shelters’s advice to renters being asked to leave
- Coronavirus: The return of evictions House of Commons Library: This Insight looks at the response from tenant and landlord bodies, the legal context and calls for more help to support both landlords and tenants who are struggling financially.
- Housing minister confirms dates for Christmas truce on evictions Inside Housing: Bailiffs will be told not to enforce possession orders in England between 11 December and 11 January 2021.
- Tories postpone pledge to ban no-fault evictions for renters until economy recovers Independent: “55,000 served eviction notices between March and August. Their landlords were not required to give six months’ notice and so courts could be processing their eviction orders as I speak.”
- ADDITIONAL SUPPORT FOR STUDENTS IN UNIVERSITY OF GLASGOW RESIDENCES University of Glasgow: In reaction to the threat of a rent strike?
Fairness in government debt management: a call for evidence:
- Government debt collection is approaching its tipping point Comment by MAT’s Matt Hartley;
- MAT’s evidence: Large majorities of National Debtline clients surveyed who held debts to central and local government organisations report collection activities had a negative impact on their wellbeing.
- StepChange’s evidence: Affordability is not properly assessed, vulnerabilities are rarely accounted for and data is not used effectively.
- my article on this: FCA to look into unregulated credit such as Klarna & Wagestream.
Amigo board battles continue:
- Gather round kids, I’m going to tell you the story of how Glen became CEO of Amigo the first time. But first, I need to take you back further, to the 00s. Another Benamor blog, from losing the entire board in a week to cocktails designed for women to drink. “Vote for a new Amigo that is like the old Amigo. Don’t let anyone tell you this time things are different, because no one knows better than the current board, things are very very similar to the moment they themselves arrived into this story.”
- Update on CEO Succession Amigo RNS: Glen Crawford has notified the Company that he no longer wishes to re-join the Board… Mr Crawford’s unexpected withdrawal of his candidature follows a divergence of views with a majority of the Board.
Covid: ethnic minorities in UK at greater risk of financial hardship – report Guardian: BAME people could suffer ‘double whammy’ of higher financial impact on top of disproportionate health effects.
Regulators blacklist a ‘faker’s dozen’ of unauthorised debt advisers Mail: Why is Google making thousands from these adverts despite crackdown pledge?
Double glazing firms Everest and Anglian Windows ‘misled customers over rip-off deals’ Sun: Everest sold a £12,800 loan at 20% APR to an 80-year-old stroke victim who didn’t need to borrow money to pay for the work.
Xbox customers urged to check credit files over ‘buy now pay later’ glitch Mirror: Fans who tried to pre-order the new Xbox Series but were unsuccessful have discovered they’ve had direct debits set up by Klarna.
Scottish Insolvency Statistics Accountant in Bankruptcy: In the period between 27 May and 31 August, there were 612 new applications for bankruptcy which benefitted from the reduced application fee –474 of which paid no application fee at all.
STOP LOAN SHARKS REPORTING APP LAUNCHED Stop Loan Sharks: a new smartphone app to make it quicker and easier for people to report loan sharks and access support services.
- Thousands of families trapped as ‘unsafe’ flats paralyse property market Times (paywall): it could leave up to 1½ million modern flats, 6% of England’s homes, unmortgageable because they cannot prove their walls are safe, breaking the first rung of the property ladder.
- Homeowners could find it almost impossible to get new mortgage if they have only a small amount of equity in homes when their current deal ends Mail: This time last year, there were 74 two-year fixed mortgage deals available for home owners with a 90 per cent LTV. But that fell sharply to just three in August 2020.
Benefits & other news
Why the government’s latest Covid restrictions should horrify economists Prospect: No good economist would prioritise GDP at the expense of everything else. But that is what the government is doing with its new measures.
People in housing need National Housing Federation: Housing Associations explain in detail who more social housing is needed.
MS18/1: General insurance pricing practices market study FCA: We propose a package of remedies to stop firms systematically increasing prices in home and motor insurance for loyal customers in the future.
Millions without mail Citizens Advice report on the scale of the issue and the resulting problems.
Remote hearings fail most vulnerable clients, say solicitors Law Gazette: People with mental health issues, learning disabilities and language barriers are believed to be at a particular disadvantage, as well as litigants in person.