My pick of last week’s news is the rent-to-own price cap comes in from April. As Martin Lewis commented:
The rent-to-own sector is perhaps the most visceral example of the poverty premium in the UK. The fact that the most vulnerable with the least pay four times as much for their electrical and white goods as everyone else is simply unjust, and it’s rightfully about time that the FCA cracks down on it.
Tweet of the week
As our new report highlights, nearly half of people receiving out-of-work #benefits in England have a common #mentalhealth problem, such as depression and anxiety, which can make it harder to navigate the benefits system 1/4 pic.twitter.com/3wWiwmK0qS
— Money and Mental Health (@mmhpi) March 4, 2019
PS19/6: Rent-to-own price cap FCA: Confirms price cap and other RTO rules come in from April. “In light of feedback received during the consultation process, we will review the price cap and the effect benchmarking has on product prices a year earlier than planned – beginning in April 2020. “
FCA acts to address unclear and excessive motor finance costs FCA: Final report highlights commission arrangements, pre-contract disclosures and affordability assessments.
- Were you sold a car on unaffordable finance? my article
- Financial watchdog to crack down on rip-off car dealers Car Expert blog: The FCA also warned that “change is needed across the market”, and made it clear that it considers the issues to be systemic rather than limited to individual lenders or dealers.
Oakam in administration FCA: a small payday lender.
Time for the FCA’s helicopter parenting approach to credit users to end and let them make their own choices CCTA: self-serving article from a high-cost lenders’ trade association. “This continuous barracking of the industry by the regulator is proving too much of a challenge to smaller lenders whose daily operations are being hampered by compliance costs and tick boxes.” What a shame. No mention of the millions whose lives have been blighted by unaffordable loans.
Dad who hid £25k debt from his family tragically took his own life Manchester Evening News: The court heard that Mr Riley had no history of mental illness and had told nobody of his financial struggles.
Mum’s debt struggle after 15 years of zero-hours contracts at council-owned SEC Daily Record: low wages and a lack of guaranteed work at the SEC in Glasgow left her using payday loans to keep her head above water after her daughter was born.
Dear NSF – letter about the proposed takeover of Provident FCA: Warning about NSF’s plans for Provident’s home collected credit and to reintroduce ROP to Vanquis.
As a 95% interest-only first-time buyer loan is offered, is this a helping hand or a throwback to the property boom’s mortgage madness? Mail: someone with a £150,000 mortgage on a 30-year term would see monthly payments shoot up from £475 to £796 after 3 years.
The benefits assault course MMHPI: New major report with practical recommendations for making the UK benefits system more accessible for people with mental health problems.
Disabled pensioners freed from ‘unnecessary’ benefits checks BBC: From spring, 270,000 people in Britain will not have personal independence payments (PIPs) regularly reviewed.
Investigation into Verify NAO: Verify is … an example of many of the failings in major programmes that we often see, including optimism bias and failure to set clear objectives.
- Problem gambling explained in six graphs Addaction: Why we’re asking MPs to support a gambling levy.
- ‘I spent £700 on loot boxes in a month’ BBC Popular games such as Overwatch and Call of Duty: Black Ops 4 are just some of the dozens of games that have loot boxes in them.
Stop the sneaky cash grab: Outraged readers back our campaign to tackle continuous payment authorities racket Mail: Often victims are oblivious to the fact that their accounts or credit cards have been legally pickpocketed.