You may be very worried about how you will cope if your income drops a lot because of coronavirus. This article looks at what you can do if you think your bills and debt repayments will be unmanageable. Things are changing fast: every day more different sorts of help are being announced. This article has been updated on 2 April. More help may later be available but if you think your … [Read more...]
Coronavirus – a good excuse for slow complaint handling?
Some lenders are telling borrowers that it will take longer to respond to affordability complaints asking for refunds because of Coronavirus. You have a right to send a complaint to the Financial Ombudsman (FOS) after 8 weeks if the lender has not given you a Final Response. But should you let the lender have a few weeks extra? Most businesses are having some Coronavirus problems, so would … [Read more...]
Coronavirus – more help for people with debts is coming
Today the FCA has proposed a set of measures that will offer help to many people whose income has been affected by Coronavirus. These include: firms will be expected to offer a 3 month payment holiday freeze on loans and credit cards; banks should not charge interest on the first £500 of any arranged overdrafts; banks must ensure no customers with overdrafts are worse off because of the … [Read more...]
Coronavirus – good news about protecting your credit score
Experian, Equifax and TransUnion, the three big UK credit reference agencies, have agreed that having a temporary "payment holiday" with a lender because of Coronavirus problems won't harm your credit score. James Jones from Experian says: “We’re really pleased to have reached an industry-wide agreement on this. Public awareness of credit scores and the role they play continues to grow, so we … [Read more...]
BrightHouse enters administration – how does this affect customers?
On 20 March 2020, BrightHouse went into administration. BrightHouse sold electrical appliances, furniture, computers and mobiles on hire purchase. Its customers made weekly payments, sometimes described as "rent-to-own". Coronavirus has meant that its 240 shops have had to shut and many customers are likely to be asking for payment holidays as their income has fallen and they can't manage … [Read more...]
Amigo stops most lending & so do some other high cost lenders
On 24 March 2020 Amigo announced that: given the ongoing uncertainty that the economic implications of Covid-19 could have for our customer base, Amigo has taken the decision to temporarily pause all new lending activity, except for lending to key workers in exceptional circumstances. This article looks at why Amigo decided to do this and why other lenders, particularly high cost lenders to … [Read more...]
Coronavirus – 4 steps to take if you lose your job
A reader asks: Help! I have just been made redundant and I don't know how I am going manage, especially as we have debts. I'm only getting a few weeks redundancy pay. What should I do? A lot of firms are closing or making some staff redundant because of Coronavirus. If your firm has just closed suddenly, you may be worried about getting the pay for the weeks you have already worked, the pay … [Read more...]
Coronavirus – lenders should be helpful & clear – like Zopa & Nationwide
Every lender in Britain has borrowers who have been badly hit financially by Coronavirus. I often criticise lenders and/or regulators. So it's great to be able to point to two lenders that ares providing the help its borrowers are most likely to need and is communicating this well. Zopa offers payments freeze on its loans Zopa, the peer-to-peer lender, has this page of information for its … [Read more...]
Coronavirus – how will mortgage payment holidays work?
All mortgage lenders are going to be introducing a three-month mortgage payment holiday for borrowers affected by coronavirus. That is the headline promise. But are you eligible, how can you claim and how will it work? I will keep this article updated as more information emerges. Who is eligible for a mortgage payment holiday? UK Finance, the trade body for banks and other mortgage … [Read more...]
Coronavirus – worried you can’t pay your IVA?
A reader has asked: My husband has an IVA which we pay every month. Now the kids are off school because of coronavirus and a friend will be looking after them for a charge. Will we be able to reduce our IVA payment? Many people with IVAs will be very worried about their finances. Their income may have fallen, possibly to nothing because of coronavirus. Or they may have extra expenses. Not … [Read more...]