My picks of last week’s news – the Independent’s Budget 2018 article and the BBC’s Northern Rock article.
Tweet of the week
Watch single mum Thuto explain how she had to refuse her £32k/year “dream job” because “work didn’t pay for us” under #UniversalCredit with just £2 a day left for food, bills after childcare costs that must be found up front 📺https://t.co/maVGLnWNPX @savechildrenuk @Gingerbread pic.twitter.com/yiazM177b7
— Work & Pensions Committee (@CommonsWorkPen) October 24, 2018
Budget 2018: Philip Hammond launches assault on payday lenders with plan for no-interest loan scheme Independent: The Treasury said a study looking into the feasibility of a no-interest loan scheme will be launched in 2019 and examine how a pilot could work in the UK… It is expected he will increase the [breathing space] period to work towards a solution, given to those facing serious debt, from six weeks to 60 days.
Northern Rock: US firm ‘misled’ UK government on mortgages BBC: Cerberus told the government it was planning to offer homeowners better mortgage deals before its £13bn purchase of former Northern Rock mortgages in 2016.
The Debt Arrangement Scheme: A New DAS? Advice Scotland blog: From Monday 29th October 2018, new regulations will come into force making the remedy more attractive to people struggling with problem debts.
‘Scandalous’ treatment of small firms Times (£ paywall) The committee recommended the creation of a “financial services tribunal” which would make it easier for small companies to obtain an independent ruling on their complaints against banks.
Arnold Schwarzenegger PPI campaign boosting self-claim rates – FCA Sky: A progress report on PPI claims ahead of next year’s deadline finds awareness has helped improve redress and complaint rates.
- UK peer-to-peer lender asks regulator for help FT: (£ paywall) Lendy appeals to FCA after major borrower threatens to sue it and its investors for £10m.
Payday lender profitability:
- Enova Q3 results – QuickQuid’s US parent had very impressive results across the board, with UK lending and profits up sharply and no warnings about the cost of redress;
- Curo Q3 results – Wageday Advance’s US parent had a difficult set of results and it said of its UK operations: “[redress] costs totaled $4.0 million. After careful consideration, we do not believe that, given the scale of our U.K. operations, we can sustain claims at this level and may not be able to continue viable U.K. business operations without action by the U.K. business to reduce the risk of claims relating to historic lending”
TIPhub: Get free client credit reports; Refer suitable clients for IVAs TIP: From today, Monday 22 October 2018, TIPhub is live. You can use TIPHub to help all your clients, not just those who may be suitable for IVAs.
Grab a mortgage bargain: don’t fix Times (£ paywall) “The cost of two-year deals has been rising steadily over the past year and, even after two increases to base rate, equivalent trackers are still cheaper.”
I’m seriously ill, but Lloyds won’t let me put my affairs in order Guardian: I have been discharged from bankruptcy, but it insists I owe it money
Universal credit news
Universal Credit in numbers: Shocking stats show food and fuel poverty in the North East Chronicle: There are now more than 17,000 benefit claimants in Newcastle that have been moved over to Universal Credit, which local authority bosses estimate will slash income from working age benefits in the city by almost £130 million a year by 2022.
Universal credit is backward step in tackling domestic abuse, MPs warn Guardian: Home affairs committee report urges government to scrap single household payments.
Tory revolt over plan to stall betting reform Times (£ paywall) “In the past two years £3.6 billion has been lost on FOBTs by some of the most vulnerable. Bookmakers are being disingenuous in claiming they need a long time to make technical changes”