My pick of last week’s news is the IMA’s report on salaries in the sector.
Tweet of the week
THREAD: Last week the DWP said ‘advance payments’ solve the problem of waiting 5-wks for #UniversalCredit. This isn’t true. They provide a sticking plaster until a first payment comes in, but aren’t a proper solution for people waiting 5+ weeks because they need to be repaid 1/3 pic.twitter.com/a3KL6WfNPu
— The Trussell Trust (@TrussellTrust) May 2, 2019
High cost credit:
- Wageday Advance (WDA) – latest news on the administration – all claims must be in by end August, payouts to be before end May 2020 and outstanding loan book sold to Lantern;
- Wonga – Latest News – all claims to be in by end September, payouts before end January 2020;
- N Brown results – revenue down across all catalogue brands, revenue and profits from their loan book up 10%
- In the jaws of debt – Independent: Would the reform of payday lending have taken as long if the scandal had hit wealthier consumers rather than the poor?
Increasing numbers of high earners using Help to Buy Property Industry Eye: figures on how the growth of HTB is concentrated in higher income groups.
HMRC quadruples spending on private debt collectors FT (paywall) HM Revenue & Customs spent £26.3m on private debt collectors in 2018, up from just £6.2m in 2014.
Changes Afoot: Noddle soon to be Credit Karma Noddle: re-branding starts this month.
Funeral poverty: one woman’s battle to pay for her son’s burial Guardian: video
Snoop Dogg backed fintech firm Klarna now has 4.4m users in Britain as young shoppers flock to the ‘buy now, pay later’ model Mail: it markets itself to retailers on being able to get customers to spend more each time they shop, often using money they don’t have.
‘My ex left me with £26,000 of debt’ BBC: Domestic abuse isn’t always physical. These people claim they were left in debt by financially abusive partners
I worked 30 hours extra a week and ended up £3,000 in debt due to get rich quick scheme Sun: For three years, Lindsay, 36, tried to sell Younique products on top of a part-time job
Benefits and other news
Universal credit claimants being underpaid as they are ‘left in the dark’ about entitlements, charity warns Independent:
‘Inadequate’ communications and administrative errors risk claimants being underpaid, reports CPAG.
Staff may quit over workload to deliver new benefits system Times (paywall) The Scottish government’s social security programme has two thirds of the required staff and budget and no clear indication of how much the devolved benefits will eventually cost, according to Audit Scotland.
DWP has sent 150,000 of the ‘fit for work’ letters that ‘risk patients’ health’ Mirror: But the wording of this letter changed in 2017 to say GPs “do not need to provide any more fit notes” to their patient – even though these are needed to keep claiming benefits during an appeal.
Free cash machines vanishing at alarming rate, says Which? BBC: Nearly 1,700 machines started charging for withdrawals in the first three months of the year, with the majority starting to charge in March.
FCA launch the Financial Services Regulatory Partners Phoenixing Group FCA: Phoenixing in this context involves firms and individuals deliberately seeking to avoid their liabilities to consumers or poor conduct history by closing down firms – or resigning senior positions – only to re-emerge in a different legal entity.