With three major reports out this week and the fall-out from Wonga, summer is over!
Sorry for so many links to Times articles behind a paywall this week – I try to avoid these unless no other papers are covering the issue.
Tweet of the week
A bracing reminder of the financial challenges faced by households from @Money_Advice today – A decade in debt:
1. There has been a massive shift towards people struggling with household bills rather than credit debts. pic.twitter.com/5mbUNp28IK
— Joe Lane (@joeAlane) September 3, 2018
A decade in debt report from Money Advice Trust ‘Smaller but trickier’ debts causing problems for households as demand for debt advice rises.
- Families in debt expected to hit 5 year high by December – but loans and credit cards aren’t the biggest problem Mirror: Three in 10 callers to National Debtline have issues with council tax arrears while 17% are unable to make rent payments
National Audit Office report: Tackling problem debt
- Household debt: How much do we owe? BBC
- Councils criticised for ‘intimidating’ pursuit of unpaid bills FT (£ paywall): Aggressive practices create costs for other parts of government, says NAO
Prosperity and justice: A plan for the new economy – Executive summary IPPR The product of a two-year enquiry into the UK economy, the final report of the IPPR Commission on Economic Justice presents a 10-part plan for economic reform to achieve prosperity and justice together.
- Case study: how anyone can fall into debt despite working Guardian
- Welby – Taxes must rise to tackle ‘unjust economy’ BBC
- Government must act to secure justice for customers, but there are wider lessons to be learnt Centre for Responsible Credit
- Wonga victims could end up with nothing Times (£ paywall) Kreos Capital will have first rights over all the proceeds of the Wonga administration, having lent the company nearly €38 million two years ago in a deal that effectively gave it the right to seize all the company’s main assets, including its lucrative Polish operations
- Wonga refunds if you still have a loan – the “right of set-off” my article. At least customers with current loans will get some redress if a complaint is upheld.
- Loan sharks could bite consumers after Wonga collapse Sky: A credit trade body says claim management firms corralled consumers into making ‘vexatious’ compensation demands. My comment – to echo Mandy Rice Davies, well they would say that, wouldn’t they – there is no evidence to back this up.
- Frank Field urges Church of England to protect Wonga borrowers Times (£ paywall)
- Struck-off loan ‘shark’ Mark Kennedy circles compensation claims cash Times (£ paywall) Payday Refunds has been associated with a former director struck off by the Insolvency Service for unscrupulous practices, including charging customers without their consent.
End the ‘interest rate lottery’, credit card firms urged Telegraph The representative APR quoted is only a rough guide and often bears little resemblance to the rate a customer is granted.
Dial-A-Cab Credit Union Limited declared in default London Loves Business: FSCS expects the total pay-out for Dial-A-Cab Credit Union Limited members to be £21million.
- Help to Buy boom could leave a generation in negative equity Times (£ paywall) Data from Nationwide shows that prices for new properties have grown 15 per cent faster than for older homes since Help to Buy was introduced.
- House owners rue leasehold purchases BBC: The National Association of Estate Agents warned: “Most buyers have no idea about the trappings of a leasehold contract until it’s too late.”
- Man took his own life with a crossbow as his home was about to be repossessed, inquest is told Derbyshire Live: He had told no-one about his money problems, hearing is told.
Police investigate after Britons lose holiday home money in £10m company collapse Sky: A couple who lost £272,000 say the collapse “stole our future and our dreams” – but they won’t get any compensation.
Police hunt loan sharks riding Britain’s rising tide of debt Reuters: Armed police shin up ladders to scale an imposing security fence and rush past palm trees to raid a sprawling mock-Tudor property in search of evidence.
Universal credit could be sunk by next stage of rollout, say experts Guardian: Calls for further delays to fix flaws before million working families move on to benefit
‘Debt, tears and suicidal thoughts’: This is the reality of universal credit in Cardiff Wales Online: Grandmother Vivien Soloman says she’s stuck and can’t get help
Plan to guarantee renters three-year tenancies is being killed off by nervous ministers Sun: The Treasury has also opposed the plan for fear that future property investment would be scared off
NHS chief calls for Premier League clubs to tackle gambling addiction BBC: Simon Stevens described gambling addiction as one of the “new threats” facing the NHS and said reports that foreign betting companies weren’t “co-funding help” for addicts were “deeply concerning”.
America’s poor subsidize wealthier consumers in a vicious income inequality cycle Brookings: Too bad (almost) no one is paying attention.