Two big bits of news last week: Lloyds takes a radical approach to overdraft fees and the Bank Of England’s Credit Conditions survey.
Tweet of the week
This caught my eye for obvious reasons… the article is interesting if you are an economist.
— Bank of England (@bankofengland) July 14, 2017
Lloyds Banking Group Launches new approach to overdrafts Their press release: All customers will pay a simple daily rate with no additional fees and charges.
- my article on this: Lloyds overdrafts – new, simple charges are a cut for most borrowers points out the disgraceful way 3 million Lloyds basic bank account holders have been treated for 18 months.
- ‘Stop milking customers’ Mail: MP Julian Knight called on all banks and building societies to follow Lloyds’ lead and get rid of unfair overdraft charges once and for all.
Credit Conditions Survey Q2 2017 Bank of England:
- Telegraph article on it: Credit card defaults jump at fastest pace since end of Great Recession
- Mortgage Strategy article Lenders predict reduced appetite for high LTV loans The Bank’s latest Credit Conditions Survey says 7.1 per cent of lenders will be less willing to lend to borrowers with LTVs of more than 80 per cent over the next quarter.
High Cost Credit Problems in Chesterfield Report from local Citizens Advice.
Finance firms fitting ‘kill switches’ to immobilise customers’ cars if they miss a payment Independent: Graham Hill, a board member at the National Association of Commercial Finance Brokers, suggested credit schemes that immobilised vehicles without giving drivers a period of grace to catch up with missed payments could be in breach of the law.
- Here’s why student loans are the mother of all mis-selling scandals Mail: The answer? The Government should cut the interest rate now – and set the interest clock ticking only when the student borrowers leave university.
- Grace is 25. Her student debt: £69,000 Guardian With graduates facing a lifetime of debt – at 6.1% interest – pressure is growing for a rethink on tuition fees and maintenance loans.
‘I tried to pay for the Dartford Crossing but am now facing a £190 penalty and bailiff action’ Mail: Two million fines handed out for failure to pay toll.
When property becomes a roof and a floor again FT (£ paywall): With or without a price crash, thinking about real estate must change.
Highlanders owe nearly £1 million in Universal Credit rent arrears Welfare Weekly: Since Universal Credit was introduced, a shocking 80% of claimants in the Scottish Highlands have been pushed into rent arrears ttotalling£988,687 – up by £300,000 since December 2016.
Getting people saving:
- How to Trick People Into Saving Money The Atlantic: Inside Walmart’s curious, possibly ingenious effort to get customers to build up their savings accounts.
- Strengthening the safety savings net StepChange: looks at the possibility of creating an accessible emergency savings fund of £1,000 inside a pension pot.
Work and relationships over time in lone-mother families JRF report: the decisions single parents on low incomes make to cope with insecurity, rising living costs and the benefit freeze.
The Living Standards Audit 2017 Resolution Foundation report
- BBC article on the report: Young families ‘hit by income slowdown’
Cash no longer king as contactless payments soar in UK stores Guardian: Landmark moment as cards now account for more than half of all purchases, according to British Retail Consortium