Benefits and overdrafts are the main themes this week.
Problem debt and the social security system StepChange: “the social security system would not meet basic regulatory requirements of consumer credit firms to treat customers fairly.” Detailed statistics about how UC creates debt problems.
- Lloyds, Halifax and Bank of Scotland introduce up to 50% overdraft rate and users with low credit scores will pay more Sun: users with Lloyds Banking Group will be charged one of three new, personalised interest rates that vary depending on their credit scores.
- Almost 8m overdraft customers to be worse off with FCA changes Telegraph
- The FCA says its overdraft plan hasn’t backfired, but are we really meant to believe it wanted 40% rates? Mail: “The financial watchdog was right therefore to crackdown on these daily charges and even more expensive unauthorised borrowing. Its mistake, however, was to trust the banks and not cap rates.”
Woolard to head UK markets watchdog on interim basis Yahoo: CEO Andrew Bailey leaves in March to become governor of the Bank of England, when Woolard will take over the FCA as interim chief executive.
Hope for mortgage prisoners as Nationwide knocks a third off its affordability requirements – and more lenders could soon follow suit Mail: Britain’s biggest mutual has cut the required amount a borrower must earn to qualify for a like-for-like remortgage with the group by almost a third.
Woman claims using ‘pay later’ service Klarna left her worried and scrimping to get by Mirror: Klarna promises you can “shop like a queen” without paying a penny in interest or charges for delaying your payment or paying in instalments – but is there a downside?
Halifax and Lloyds Bank customers could find their credit cards cancelled in February under new debt rules Mail: My comment – this is about the 36 month persistent credit card debts letters people are starting to get. The important word is “could” – if the banks have decided what they are going to do in practice, they aren’t telling anyone.
Benefits & other news
The death of Errol Graham: Man starved to death after DWP wrongly stopped his benefits Disability News. “I don’t know how these people sleep at night.”
Oldham Piloted Universal Credit 7 Years Ago. Here’s The Grim Reality Of What Happened Since. HuffPo: “If they wanted to set up something to defeat the objectives it was meant to deliver, Universal Credit couldn’t have done a better job”
- Nationalised Post Bank network proposed to help solve access to cash crisis Herald: “The UK Treasury should oversee the creation of a publicly-owned Post Bank which should operate with a public service mandate to provide basic banking services to all citizens”
- Big banks under threat! Challengers Monzo and Starling begin to win the battle for current account switchers Mail