Sky broke the story: Biggest payday lender QuickQuid on brink of collapse.
This was then confirmed when QuickQuid’s American parent said it was exiting the UK:
- Customers owed refunds to lose out as QuickQuid closes My story
- QuickQuid owner on brink of collapse as payday lender complaints surge Guardian;
- QuickQuid: UK’s largest payday lending firm to close BBC.
The following day it was confirmed that CashEuronet, which owns the QuickQuid brand, had been placed in administration:
- Notice from Grant Thornton on QuickQuid’s website;
- my story: QuickQuid goes into administration – what will happen.
And the background to this – payday lending and poverty:
New vlog👇#QuickQuid gone under; big question = why so many workers need credit to cover bills & groceries. It’s not right 1 in 8 workers are locked in poverty. Employers & Gov must act now. Free people with better pay, affordable credit, proper social security. @jrf_uk pic.twitter.com/Lq9EIGafug
— Helen Barnard (@Helen_Barnard) October 25, 2019
Negative disposable income
There has been a lot of discussion of this massively increasing problem this week. Anna Hall, head of Money Advice at Citizens Advice tweeted a long thread, read it all!
I’ve been working on the 40% a lot recently. That is the 40% of clients with unmanageable debt who we help across the whole sector but don’t have a solution available to them or can’t take one up. They’re mostly those with deficit budgets (more going out than coming in).
— Anna Hall Ⓥ (@Anna__Hall) October 21, 2019
CAP released an excellent report:
Unlocking a new start – Why insolvency alone cannot provide a new start for people in severe financial crisis CAP report: Includes the recommendation to “Bring DRO rules on omitted debts in line with bankruptcy, so all debts within the £20,000 limit incurred before the application are covered, including historical benefits and Tax Credit overpayments.”
And this was then a major session at MALG annual conference on Thursday.
Other debt news
How banks can use customer financial data to help people avoid money problems MMHPI: On using financial data to spot customers in difficulties and offer help … and the potential risks involved with how this is done.
Martin Lewis VIDEO: Should you pay off your Plan 1 student loan? MSE – it’s complicated…
Benefits & other news
Barclays U-turn on cash access in post offices BBC: “Ultimately we have been persuaded to rethink our proposals by the argument that our full participation in the Post Office Banking Framework is crucial at this point to the viability of the Post Office network.”
I had a visit from my benefits assessor – and now I fear the state more than poverty Guardian: “The report concluded that I was ineligible for any payments. I lodged an appeal and waited. I’ve been waiting for 80-odd weeks. During this wait my eyesight has got worse. I have had three more operations on my brain. I have written another novel and have done my best not to starve.”
Unemployment, sanctions and mental health: the relationship between benefit sanctions and antidepressant prescribing Journal of Social Policy: “every 10 additional benefit sanctions are associated with 4.57 additional antidepressant prescribing items.”
The new mums like me facing an agonising wait for our cash Mail: a massive backlog at DWP means that applications are being delayed by around 14 weeks, and many mothers are going into labour without knowing when their payments will start.