My pick of last week’s news is the BBC article Payday lender’s collapse to hit borrowers. This is about a payday lender many people will not have heard of… yet 330,000 people may have been given unaffordable loans, out of a total customer base of 650,000.
Tweet of the week
— Insolvency Service (@insolvencygovuk) April 6, 2019
- Wageday Advance (WDA) – latest news on the administration My article update for the administrator’s proposals.
- Payday lender’s collapse to hit borrowers BBC – article says 330,000 people may be able to claim a refund.
- ‘Worrying’ rise in number of people with payday and high cost credit debts Sun: Average high cost credit debts have also risen by £236 from £1,519 in 2017 to £1,755 in 2018
- HMRC reports itself to police watchdog over taxpayer’s suicide FT (paywall) Minister rejects claim that tax avoidance crackdown could lead to mass bankruptcies.
- Tax officials are ‘bullying’ in-debt callers into paying more upfront than they need Sun: We reveal the deliberately misleading tactics HMRC staff have displayed on call centre screens.
Citizens Advice reports 16% jump in problem bailiffs FT (paywall) Charity demands independent regulation of the sector to combat aggressive debt collection
Families plunged into debt as burial and cremation fees more than double Mirror: Burial and cremation fees have rocketed by up to 124%, according to new figures, pushing some families beyond their means.
Home Office makes £2m a month from child citizenship fees as parents driven into debt Independent: ‘This is so obviously unfair… It will have disastrous consequences for these children later in life,’ says immigration lawyer
- Longer mortgage terms mean debt life sentences for younger buyers Times (paywall) More than half of all mortgage products on sale today now have a term of up to 40 years… less than 3 per cent have a term of 25 years.
- Equity release boom sees £11m a day borrowed by over-55s against the value of their homes last year to help fund retirement Mail: The product’s soaring popularity has drawn in massive investment firms such as Legal & General, whose boss Nigel Wilson believes industry sales will soon top £20 billion a year.
Should we abolish household debts? FT Adviser: The central premise of Ms Montgomerie’s book is that debt in the Anglo-Saxon countries – the UK and US especially – is a big drag, not only on individual households, but the economy itself.
From credit insurance to making payday any day: The companies trying to solve Britain’s high-cost credit addiction Mail: This is Money rounds up some of the companies offering interesting and alternative ways for Britons to get short-term access to cash without resorting to high-cost credit.
Benefits and other news
Study found universal credit causing hardship a year and half ago Guardian: Ministers sat for nearly a year and a half on research that revealed that tax credit claimants experienced “real financial problems” after they signed on to universal credit, it has emerged.
10% Of Jobcentres Have Been Closed Since 2015 – Despite Universal Credit Rollout HuffPo: The Citizens Advice Bureau has heard stories of people missing their Jobcentre appointments due to delays on public transport, only to be told they must return the next day – and fork out another £4.50 in tickets.
Bookmakers accused of bypassing FOBT rules with roulette-style games Guardian: New high-stakes games pop up after government reduces stakes from £100 to £2.
Claims firms ‘will disappear at worst time’ BBC: The FCA said that its new regulation regime was designed to strike out any “cowboys” in the industry.