My picks of last week’s news are the Citizens Advice report on Council Tax debt collection and my article on Why guarantors need extra protection.
Tweet of the week
Turns out that fining people because they’ve got no money doesn’t actually encourage them to have more money. https://t.co/FxJEtFnwQn
— Ash Sarkar (@AyoCaesar) April 22, 2019
Cross-border credit reporting is at last becoming a reality Economist: A Californian startup is helping migrants import their financial histories to America
High cost credit:
- Guarantor loans – why guarantors & borrowers need extra protection My article.
High-cost lenders circle as students run out of cash Times (paywall) Ocean Finance, a broker, advertises between £100 and £10,000 for up to five years. If you enter details for a 20-year-old student living as a private tenant with no income, the website automatically directs you to the firm Amigo Loans.
Inside the UK’s debt crisis FT (paywall) A typical day inside a PayPlan call centre reveals the problems encountered by millions
The Costs of Collection: The high price of council tax debt collection Citizens Advice: One sentence that jumped out at me that isn’t directly related to Council Tax: On average Citizens Advice debt clients have just £14 a month disposable income.
Universal Credit means my baby and I go without food – and childcare fees mean I can’t go back to work Sun: Single mum Lauren Anderson, 24, is thousands of pounds in debt and often can’t afford to buy food due to Universal Credit
- Despite promises, mortgage prisoners will remain captive for years yet Telegraph: customers whose loans are owned by the zombie lenders will have to wait at least two years until lenders are obliged to tell them about the rule change.
- Nationwide becomes the first big lender to launch retirement interest-only mortgages Mail: The announcement comes alongside the release of a range of Nationwide later life lending products, which also includes a retirement capital and interest mortgage – allowing homeowners to start to pay off their outstanding balance slowly – and a lifetime mortgage equity release product.
- Second-stepper syndrome: the property problem that’s overlooked Money Observer: the price differential between the first and second steps of the property ladder has doubled over the past decade.
- New mortgage lets you dip in and out of your house’s value like a cash machine Mirror: my view – what could possibly go wrong?
- Is a cheaper but longer mortgage worth it to get on the ladder? Observer: the prospect of paying less – but for much, much longer than previous generations – has emerged.
Benefits & other news
Food bank network hands out record 1.6m food parcels in a year Guardian: Trussell Trust tells state not to rely on them and demands changes to UK benefit system
- Britons without a bank account ‘pay a £485 poverty premium’ GuardianNumber of unbanked people has fallen to 1.2 million, but they miss out on discounts.
- How Monzo is banking on customer apathy FT (paywall): Monzo says the fact that you can earn more interest by going directly to OakNorth is pointed out in the T&Cs, but as we know, people don’t really read those.
- Fintech challenger overtakes leading banks on business overdrafts Business Cloud: London-based iwoca’s share of UK small business overdraft approvals surpasses that of Santander and HSBC.
FCA must clear out ambulance chasers FT Adviser: If an advice company has been responsible for FSCS compensation payouts totalling £11m, should the people involved work in the financial services sector again?
‘Worrying’ rise in number of people being paid below minimum wage, study finds Independent: Women more likely to be paid below legal level, with childcare, hospitality, retail and cleaning the worst-offending sectors