In a very busy week, my pick of the news is that the Cabinet Office has launched Fairness in government debt management: a call for evidence. If you are a debt adviser, why not respond with some examples from your own clients – and pick up a few CPD points for doing this?
Tweet of the week
This comment from a reader today illustrates why @insolvencygovuk needs to dramatically reduce the £680 fee for bankruptcy. In most cases people go bankrupt BECAUSE THEY HAVE NO MONEY. How hard is that to understand? pic.twitter.com/7lN7gedtRP
— Debt Camel (@DebtCamel) July 1, 2020
Fairness in government debt management: a call for evidence gov.uk: ” aggressive debt recovery can have a detrimental effect on certain individuals and businesses, in particular people who are vulnerable or in financial hardship” .
Increasing Debt Advice Capacity in England MaPS: an initial £16 million i… will be aimed at increasing the capacity of high-quality, free-to-customer debt advice by recruiting and training additional debt advisors.
FCA announcements (not all of them – my picks!):
- proposed new car finance support – another 3 month break in line with other announcements
- Further support for consumers impacted by coronavirus: feedback on draft guidance and rules (personal loans, credit cards and overdrafts) -FCA confirmed the proposals as expected. Interesting feedback on “masking” of credit records from lenders.
- update on banks’ overdraft pricing – IMO they have bottled it.
How mortgage holidays can affect your ability to borrow BBC: “I’ve been saying to people, despite all these promises about how it won’t affect your credit file, I absolutely guarantee it will come back to bite you.”
Banks braced for £10bn hit as customers are weaned off loan payment holidays just as job losses shoot up Mail: Lenders have granted payment holidays on loans worth more than £250bn
- Landlords can start evicting people again, Tory minister confirms Mirror: Tory housing minister Lord Greenhalgh said ending the ban on evictions was an ‘important step towards ending lockdown’
- Landlords agree three ways to help struggling tenants including rent reductions Sun: the guidelines aren’t legally binding so a landlord doesn’t have to agree to a reduction in rent as a solution and there won’t be any repercussions either.
High cost credit:
- Sunny goes into administration – what should customers do? As expected, they went bust on Monday. My article.
- Amended Voluntary Requirement with FCA RNS: Amigo gets more time to work through the large numbers on new complaints.
FCA reveals it has no plans to revisit FSCS funding FT Adviser: The comments were made in response to a stakeholder’s calls for the FSCS levy to be based on operating profit rather than turnover and a limitation period on compensation claims to be introduced.
Zopa to offer lower credit card interest rates to careful spenders who have better credit ratings Mail: The better the borrower’s credit score, the lower the rate they would be charged.
- What I’ve learned from a lockdown spending diary iNews: “If there is a risk of losing your job or seeing your income significantly reduced, think about taking that mortgage holiday and stash those savings away in an easy-access savings account for a potential rainy day.”
- Debt: ‘The first step towards change is admitting you have a problem’ Guardian: “Caring too much about what other people think about you can be a massive financial burden – that’s always been a massive problem I’ve had.”
- Coronavirus: ‘People like me are really, really suffering’ BBC video: He didn’t earn a big enough proportion of his income that year on a self-employed basis to qualify for help now.
Benefits & other news
- Dad horrified at £4,642 gaming app bill BBC: I was astonished to see hundreds and hundreds of separate transactions, all between £0.99 and £9.99… I thought I’d been scammed.
- Gambling regulation has gone ‘horribly wrong’, says Lord Grade Guardian: Former TV boss leads Lords committee favouring radical reforms to curb problem betting.
- When the funds stop: bank card gambling blockers MAT: webinar aimed at creditors July 8th.
The future of behavioural science: ambition with a dose of humility FCA Insight Team: Twelve years from the launch of Nudge, the field has notched up considerable successes. But the world around us is changing and the lower hanging fruit are getting harder to see.
Despite the suspension of conditionality, benefit claimants are already looking for work LSE: this can still be a watershed moment in how we think about conditionality and its relationship to income and employment support.