My pick of last week’s news is the FCA Insight Blog: Don’t look here: do risk warnings really work?
On my list for future reading – what else is there to do over Christmas? – is the book Automating Inequality by Victoria Eubanks which is discussed in Algorithms and their unintended consequences for the poor.
Tweet of the week
A payday loan refund of over £9,000 from Myjar for a Debt Camel reader takes his total refunds to over 30k and clears his DMP.
Use the free template letters here to complain. https://t.co/u115TwE3Lj pic.twitter.com/xPirefNI3D
— Debt Camel (@DebtCamel) December 14, 2018
Don’t look here: do risk warnings really work? FCA insight blog: a recent proliferation of research on disclosure has increasingly found that policymakers tend to overestimate the effectiveness of simply warning or informing people.
Do you suffer from personal finance paralysis? Delaying decisions cost each of us £1,600 in 2018 – and it’s thanks to too much choice Mail: The cost of personal finance indecision was calculated by obtaining national figures of individuals and households with a mortgage, personal loan and/or credit card.
Hitting the books: student loans and the public finances Resolution Foundation: by changing the presentation of that cost, it could well have big implications for the Chancellor’s fiscal rules – and for the Brexit “deal dividend” he’s been so keen to talk up.
Justice Committee to investigate the enforcement of debt by bailiffs House of Commons Select Committee: this is not a call for written evidence.
The risks and benefits of sharing rent payment data StepChange blog: The examples of these notices that we’ve seen don’t highlight risks or provide sufficient information for tenants to make an informed decision about whether or not to participate in the scheme.
5 red flags to look for when choosing your next personal finance product This is a paid-for feature by FSCS which says “If a regulated firm mis-sells a product or offers faulty advice then the customer could make a claim against them, or potentially receive a payment from the Financial Services Compensation Scheme if the company has since gone bust.” I think it should be clear that this does not apply to regulated firms such as Wonga.
Universal credit news
Woman, 26, with severe MS had benefits cut in half on Universal Credit – despite not being able to feed herself or even sit up iNews: Charlotte Black is being expected to live off much less on Universal Credit and is now in rent arrears
Universal credit: Generosity takes many forms Children’s Commissioner on hearing the first-hand experiences of one of the foodbank’s members of staff.: for example “We’ve come to an agreement that we will support people for the duration of their claim wait, rather than the 3 voucher limit we normally work to.”
Gran saved by foodbank is now helping others survive Universal Credit misery Mirror: But I ended up sick, jobless and homeless in the space of a month. Then moving on to UC left me in debt and pushed me to the brink.
Barclays lets customers block gambling transactions MoneySavingExpert: “So friction is just as much a behavioural blocker as a transactional one. It isn’t perfect. It won’t stop everything, yet hopefully it is another tool to help people control themselves.”
Young homeless blocked from renting, says report BBC: one in five young people in Centrepoint hostels is ready to move on but they are effectively “bed-blocking”, because there is nowhere else for them to go.
Preventable illness is factor in slower life expectancy increases Public Health England: stubborn inequalities have widened in recent years – those in the poorest areas have seen less improvement in life expectancy than those in the wealthiest. For women in the most deprived communities, life expectancy has actually decreased.
Legal aid advice network ‘decimated’ by funding cuts BBC: Analysis shows up to a million people live in areas with no legal aid provision for housing, with a further 15 million in areas with one provider.
Algorithms and their unintended consequences for the poor Harvard Law Today: “shocking disparities between the intended outcomes and the actual impacts these technologies have on poor and working-class people“.