My picks of last week’s news are the various stories about high-cost lenders.
Tweet of the week
— Greg Wright (@gregwrightYP) June 24, 2020
High cost credit lenders in trouble:
- Update on Complaints Amigo RNS announcement: The VReq was intended to clear a backlog of approximately 9,000 complaints that would have been aged eight weeks and over as at 26 June 2020… since our announcement on 8 June, Amigo has continued to see a substantial increase in the rate of complaints.
- Payday lender Sunny heading for administration my article.
- UK subprime lender warns of going concern risks FT (paywall) Non-Standard Finance says breach of debt covenants threatens ability to make new loans.
UK ‘debt bubble’ fears on the rise as 8m seek help during coronavirus crisis Mail: Banks are likely to bear the brunt of the pain when the furlough scheme closes on October 31 and customers’ payment holidays run out.
Reimposition of enforcement visits ‘deeply troubling’ Credit Connect: The Ministry of Justice has announced that it will allow enforcement visits to recommence from 24th August 2020.
Coronavirus: Energy firms permitted to chase unpaid bills again BBC: Energy companies have been given the go-ahead to chase unpaid energy bills again – although they have been warned not to be aggressive in their pursuit. My comment – what could possibly go wrong?
Average ‘shielding’ worker has lost £1,400 during coronavirus lockdown, figures reveal ITV: Citizens Advice found more than one in five (22%) of those who are shielding have fallen behind on a bill.
Homes at risk to the hard sell: Equity release is not right for everyone Mail: the regulator should ban percentage commission fees on equity release. This will help ensure customers get the right deal for them, rather than the most lucrative for the adviser.
Benefits & other news
‘You can’t pay cash here’: how our newly cashless society harms the most vulnerable Guardian: many older, abused and unbanked people still depend on cash. What will happen to them?
Four single mums win Court of Appeal universal credit case Leigh Day: the Secretary of State for Work and Pensions (SSWP) has acted irrationally and unlawfully by making universal credit regulations which fail to take into account that the date monthly salaries are paid can vary because of weekends and bank holidays.
Stephen Timms: ‘Universal credit’s five-week delay is indefensible’ Guardian: The cross-party MPs’ report is unanimous: for all the sterling efforts of the Department for Work and Pensions (DWP) staff to keep universal credit up and running, millions of people have still struggled to get the support they needed to pay for essential living costs during the pandemic.
- ‘I’ve racked up £9,000 gambling debts on furlough and hidden it from my husband’ Mirror: The Government cut the maximum bet on fixed-odds terminals in bookies shops from £100 to £2 two years ago – but the rules do not apply online.
- Gambling regulation: problem gambling and protecting vulnerable people House of Commons Public Accounts Committee: The Department for Digital, Culture, Media & Sport and the Gambling Commission have failed to adequately protect consumers at a time of considerable change in the sector, as gambling increasingly moves online and new games become popular.
When fintech fails Bailey Kursar blog: the fall out from Wirecard’s alleged fraud has gone from a niche industry scandal to a full-on disaster. Hundreds of thousands of UK consumers have been hit, suddenly told on Friday that they were frozen out of their accounts.
- Wirecard and the missing €1.9bn: my story A short video by the FT journalist.