My pick of last week’s news is the Financial Ombudsman’s newsletter, with some very interesting case studies.
Graphic of the week
Sub-prime cars: are car loans driving us towards the next financial crash? Analysts fear the boom in personal contract plans are mirroring the sub-prime mortgage scandal and are fuelling a colossal build-up of debt in UK and US.
More articles on Universal Credit delays to payments causing debt problems:
- Universal credit flaws pushing claimants towards debt and eviction
- Former welfare minister Lord Freud says problems with benefit causing one in four low-income tenants to run up rent arrears.
The latest Financial Ombudsman News, issue 139 focusses on generational aspects, including examples of cases where under 25s are caught up in fraud accusations and older customers mortgage application problems. Latest statistics show payday loan complaints continuing to rise.
Sharp rise in county court judgments against consumers In 2016, a total of 912,389 judgments were registered against consumers in England and Wales – an increase of 24% on the 734,205 registered in 2015.
Which debts can you go to prison for not paying? new article.
Nationwide fears grow over rising defaults on loans. Britain’s biggest building society has dramatically upped its provision for bad debts over fears that borrowers are poised to start defaulting on loans.
‘Treat Banks Like Pay-Day Lenders’ Rachel Reeves MP calls for a cap on overdraft charges.
Has British Gas added a new default for an old debt? People are reporting that British Gas has incorrectly added recent default dates in Januray 2017.
Revenge eviction law ‘not working’. Figures gathered by Radio 1 Newsbeat through Freedom of Information requests show that more than half of local councils across England haven’t used these powers.
Lots of comment about housing after the White Paper, almost none of it positive:
- Housing white paper: Government reinvents the wheel
- Housing White Paper: well that was worth waiting for, wasn’t it?
- The housing white paper creates two nations: owners and renters
- Housing minister warns there’s ‘no silver bullet’ to fix the property market
One-fifth of rail passengers buy wrong tickets from machines. While 7% of people underpay and could be fined, 13% are paying too much.
A fitbit for your finances and a way to improve your mental health “My hope is that, as well as empowering those at risk to stay in control, this [FinTech] trend will help us all boost our financial well-being, and be happier about our money, however much we have.”
Energy prepay cap to save customers £80, announces Ofgem. Four million customers on prepayment energy meters are expected to save around £80 a year after a price cap was announced.