My pick of last week’s news is Barclay’s decision to stop its customers taking money out in a post office.
Government response to Treasury Select Committee re the FCA’s perimeter Treasury Select Committee: “The Government does not therefore see the case for providing a formal power for the FCA to request changes to the perimeter.”
- For why this matters to debt issues, see MAT’s blog from a couple of months ago: Why the FCA’s regulatory perimeter is more interesting than it sounds.
How Klarna’s buy-now-pay-later set up left one student feeling exploited iNews: it all creates an impression the company is a relaxed shopping option instead of a serious loan agreement, she says. It’s only when payments go wrong that they act like a bank.
Money Shop, Payday UK / Express – Latest News My article. ICL’s Scheme of Arrangement has been approved.
Barclays blow to Post Office banking BBC: Barclays will let its customers deposit money, but not withdraw cash from a Post Office counter using a debit card.
- Chair criticises Barclays move to restrict customers’ access to cash Business, Energy and Industrial Strategy (BEIS) Committee: This unjustifiable decision from Barclays to stop customers accessing their own money from post offices is a deeply retrograde step which lets down customers, undermines the post office network, and potentially leaves people in many places without access to their own cash.
- Barclays refuses to back down over Post Office ban: MPs join growing backlash against bank’s ‘unjustifiable’ decision Mail.
Cracks appear in debt-driven PCP schemes that may cost the sector and customers dear Telegraph (premium – register for one free article a week) Bubble or not, the car industry has ratcheted up risk by pushing PCP and other types of financing. Even the most bullish of experts admit that the industry faces a major test if any part of the PCP cycle fails… The road from boom to crisis is well-travelled and could soon be littered with cheap Skodas.
Consultation response – Insolvency Service Regulation of Insolvency Practitioners Money Advice Trust: Given the level of poor practice we see in relation to lead generation, the practices of larger volume providers of IVA firms, the failure rates of IVAs, and so on, it would be hard to demonstrate that we have much confidence in the ability of RPBs to deal with IP misconduct swiftly and impartially.
First-time buyers can now make a cash offer on a home within 24 hours – without being approved for a mortgage Mail: Habito reckons these buyers should definitely get a mortgage and if they don’t it makes a form of bridging loan to them, charging 0.5 per cent a month interest, or 6 per cent a year.
Phantom debts that have come to haunt energy customers Guardian: Hundreds more Extra Energy customers have received unexplained three- and four-figure bills months after the company ceased trading and many, who were never customers, claim to have been contacted over phantom debts.
Benefits & other news
DWP pull Jobcentre document on chronic illness after disabled people’s outcry Mirror: The form asked claimants to describe their condition while avoiding words like “chronic” or “degenerating” – because they “sound worse than they are”.
Children ‘interested in’ gambling and alcohol, according to Facebook Guardian: Facebook’s desire to offer as much information as possible to advertisers for their targeting of consumers has repeatedly led to issues regarding advertisers’ ability to misuse that targeting data in ways that are often borderline, or outright illegal.
Revolution on the Installment Plan The Baffler: Thought-provoking essay on the moral hazards of the money diary.
Disaster of contingent charging should not have surprised the FCA Money Marketing: “the FCA’s mandate to promote competition in consumer financial markets… leads to an almighty emphasis on giving more or better information to individual consumers as the means to the end of efficient competition – that the means are ineffective and the end implausible is never questioned.”