It’s been a busy week for news: Amigo puts itself up for sale, IVA early failure rates up again, FCA asks banks to explain their new overdraft charges.
But my pick has to be the 4.3p in the £ which is all the 400,000 people owed compensation by Wonga are getting from the administrators.
Very low Wonga payout:
- Wonga victims will only get 4.3p in the pound my article;
- Wonga compensation ‘an insult’ to borrowers BBC.
- WRONGA Wonga victims to get just 4p from every £1 they are owed Sun.
- Government faces calls to help Wonga creditors receive compensation owed York Press.
FCA letter to banks FCA – banks asked how they set their new rates and how they will be helping customers who are worse off.
- Banks asked to explain 40% overdraft rates BBC.
- Martin: ‘FCA subtly slaps banks’ wrists – and provides some relief for overdraft prisoners’ MSE. “the regulator is baring its teeth, asking banks why from April they’ve all set the same 40% overdraft rate, and how do they justify what looks like cartel pricing?”
Strategic Review and Statement from Richmond Group Ltd Amigo RNS: the Company’s controlling shareholder … is a willing seller of its 60.66% holding in Amigo and, as a result, the Company has today launched a strategic review and formal sale process … which may result in a sale of the Company or a sale of some or all of the Company’s business.
Debt repayment orders hit record 1.15m in 2019 Guardian: odd title – it refers to CCJ numbers.
Individual Voluntary Arrangement Outcomes and Providers, 2019 Insolvency Service: Current one-year IVA failure rates have risen from a recent low of 4.1% for2013 registrations, to 8.4% for 2018 registrations, the highest rate since 2002.
- StepChange comments on Insolvency Service data StepChange press release with figures showing how much lower their IVA failure rates are
- Individual voluntary arrangements — why the latest data shows the market needs to change StepChange blog: Alongside better regulation, there is a very strong case for making changes to the IVA itself to better align this important debt solution to the needs of consumers using it now.
Charity UCAS still sending out emails promoting private loan providers to students which could see them pay £13,700 to borrow £5,000 Mail: despite being criticised for the adverts, which saw it cautioned by the Charity Commission and was looked into by universities trade body University UK, UCAS is still sending out emails promoting the company.
Revealed: high-pressure loans that cost families their homes Times (paywall) NCF’s website says it accepts 98% of loan applications, that it takes just two hours to agree to lend up to £500,000, and that it can offer finance without doing searches that affect the customer’s credit score. NCF has no connection to Nationwide Building society. My comment – if you have been affected by one of these loans, talk to Business Debtline.
Benefits & other news
Woman in wheelchair stripped of disability benefits because she can walk four steps in assessment Independent:
Severely disabled woman told moving from mobility chair to sofa suggested she could walk 200 metres unaided.
Improving Financial Inclusion By Improving Financial Resilience Fintech Direct blog: It’s time to shift the conversation from just helping people access more affordable credit to include helping them build up financial resilience enabling them to weather adverse life events.