Registry Trust has published the statistics for CCJs for the first quarter of 2017. They are shocking, with almost 300,000 consumer CCJs, the highest number for ten years. The details are: 298,901 CCJs were registered against consumers in England and Wales from January - March 2017; this is an increase of 35% on the same quarter in 2016; the average size of a CCJ fell to … [Read more...]
Find out what's new and what's changing in the debt world in Britain.
Should Creditfix use the promise of early exit loans to sell IVAs?
Mr D asked: I was contacted by company called Creditfix to clear my debts in an IVA. I have about £30,000 debt (two loans, some credit cards, overdraft) and the advisor calculated my options. I was told 2 and half years of paying £150 a month, then get a £4,500 loan to pay rest. Is that ok??? * I don't know if an IVA is a good option for Mr D. He needs to decide if he can commit to the IVA … [Read more...]
Pre-Action Protocol for Debt Claims now final
In March 2017 the Pre Action Protocol for Debt was at long finalised, it's here: Debt PAP. It comes into force on 1st October 2017. It has taken many years of negotiations, consultations and delays to get here. I've asked a couple of experts for their reaction to the news. Tim Lett, who has been involved for the last four years in getting this protocol agreed, writes: I am very … [Read more...]
Who were the biggest IVA firms in 2016?
Here is the League Table for IVA firms last year, showing all firms that registered more than 500 IVAs in 2016. The data comes from the Insolvency Service, it was supplied to Louise Yates. I previously published a half-year table for 2016 - this article replaces that one now the information for the full year is available. The previous statistics for 2015 were discussed here. The up/down … [Read more...]
News snippets about high cost credit
I thought it would be interesting to bring together recent news items about various types of high cost lending in Britain. I will be keeping this page updated. Payday loans May 2017 Comparison Websites - payday lenders now have to advertise and link to at least one of them. A pretty pointless idea from the CMA. May 2017 Russel Hamblin-Boone steps down as CEO of the Consumer Finance … [Read more...]
FCA’s Call for Input on High Cost Credit – my thoughts
In November 2016. the FCA issued a very broad Call for Input on High Cost Credit. In November 2014 when the price cap and other payday lending rules were announced, it was stated that they would be reviewed after two years and this new Call for Input is part of that review. Andrew Bailey, Chief Executive of the FCA, said: We have come up to the point of reviewing the cap on payday lending, … [Read more...]
Insolvency numbers up – but rising debt isn’t the main cause
On 27 January the Insolvency Service published the data on insolvency in 2016. The number of people who became insolvent in England and Wales last year was 90,930. As the graph above shows, this has reversed the trend of personal insolvency numbers falling every year: the total for 2016 is over 13% higher than in 2015, the first time there has been a rise since 2009. Bank of England statistics … [Read more...]
Scarcity – why people in debt need a breathing space
I recently read Scarcity: Why having too little means so much by Sendhil Mullainathan and Eldar Shafir. Since then I have been recommending it to friends in the debt advice world. I think Scarcity is a very interesting read for anyone interested in personal debt advice and policy in Britain. Many of its arguments are directly applicable to the idea of introducing a breathing space for debt that … [Read more...]
Debt Clever – trying to profit from closing down?
The FCA says that over a hundred debt management firms who applied for authorisation have been refused or have withdrawn their application. In September 2016, Debt Clever became one of these firms. Some firms that are closing are looking for ways to continue to make money from their clients. My previous article, Why the FCA should ban the Compass debt advice model, has some examples. This … [Read more...]
Pensions safe in bankruptcy after Appeal Court decision
Following an Appeal Court ruling on Horton vs Henry, published in October 2016, pensions are once again safe if you go bankrupt. The full judgment is here. The background to this case was: before 2000, pensions formed part of a bankrupt's estate and would be taken once the bankrupt reached pension age; the Welfare Reform and Pensions Act changed this. For people going bankrupt after … [Read more...]
- 1
- 2
- 3
- …
- 7
- Next Page »