The news story of the week has to be the Treasury’s announcement of the breathing space to start in 2021.
But Panorama’s Easy money, tough debt? should be watched by anyone with an interest in personal debt in Britain. And if the Mail’s as yet unconfirmed scoop that the Money Shop goes under is correct, that will be another lot of payday loan victims who do not get full compensation.
Headline of the week goes to Citizens Advice for Systematic scam continues: loyalty penalty deadline passes without enough action from regulators … telling it like it is!
Tweet of the week
This tweet starts a thread with a series of interesting graphs:
Your regular reminder of just how much the mortgage market has changed since the financial crisis. Two big changes underpin everything else. First, the slowdown in activity – with the number of new mortgages advanced each month still down 49% on the start of 2007 by 2019 pic.twitter.com/Jg4HzwMZgT
— Matt Whittaker (@MattWhittakerRF) June 21, 2019
Individuals to be protected from ‘devastating impact’ of problem debt Gov.uk: A new Breathing Space scheme will protect individuals with problem debt, with those in mental health crisis to get further protections while they receive treatment.
- New Breathing Space scheme will block bailiffs and freeze interest for 60 days Mirror
- Problem debt: People to be given ‘breathing space’ BBC
- Breathing Space: A breath of fresh air StepChange.
Easy Money Tough Debt? Panorama program, on iPlayer. Looks at high cost credit including QuickQuid, catalogue debt and Amigo.
- Panorama’s “Easy money, Tough debt” my article on the program.
- Fiona Phillips investigates shocking truth behind high-interest guarantor loans Mirror: “It was then that I felt the full force of Amigo and my guarantor was harassed daily. We can barely afford food now and I’m frightened for the future.”
Hundreds of jobs at risk as payday lender The Money Shop goes under following ‘unprecedented number of customer complaints’ Mail: the Nottingham-based company has launched a mass redundancy process with its 427 staff across its head office and stores.
- Money Shop to close? Implications for refunds my article.
Living in fear of the bailiffs’ knock on the door FT (paywall) includes a couple of cases: “the bailiff, working for … Jacobs, sent a text message telling her to “borrow the money” to repay her debt.” & “Shouting through my letterbox, ringing me all the time, he told me my children would go into care as I would be imprisoned”
Energy consumers face £172m bill for collapse of 11 suppliers Guardian: Warnings that 32,000 households may be targeted by debt collectors.
Benefits & other news
Systematic scam continues: loyalty penalty deadline passes without enough action from regulators Citizens Advice: The FCA and Ofcom need to urgently set out their plans for tackling this systematic scam
WhatsApp ‘change exchange’ to counter town’s loss of banks BBC: Traders in Halesworth, Suffolk, use the messaging app to connect with others keen to swap notes for coins.
Universal credit is failing military veterans, study finds Guardian: Veterans with complex needs report overwhelmingly negative experiences of benefits system
PPI mis-selling claims: The deadline approaches BBC: As many as 64 million PPI policies were sold from as long ago as the 1970s.
It’s dog eat dog in the world of claims firms Mail: looking at the background (“it raked in £880,000 from 500 investors, but its greyhounds were worth just £32,000.”) of someone running his second (or third?) claims management company which currently has a temporary licence from the FCA. The first stopped trading after the previous regulator, the MoJ, began to investigate it.