Credit, Collections & Insolvency News
Vulnerable people risk being left with no way to pay for essential products and services as the coronavirus crisis further accelerates the UK’s shift to a cashless society, according to new research by Which? as it calls for government action to ensure that the cash system does not collapse at a time when millions of…
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The Financial Conduct Authority (FCA) has extended the mortgage payment holiday application deadline for customers struggling to meet payments. Mortgage customers now have until the end of October to request a break from payments while repossessions are further blocked. The FCA has confirmed the support firms should give to mortgage customers who are either coming…
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Consumer confidence amongst those aged 25-34 has seen a marked improvement, according to research from PwC UK, which comes ahead of government guidelines published this week paving the way to the reopening of non-essential retailers. The figures show that consumer sentiment went up from -7 to +16 for consumers in this age group based on…
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One-in-eight (13 per cent) private renters have fallen behind with their housing costs since the coronavirus crisis started, compared to just one-in-twelve (8 per cent) mortgaged home owners, highlighting how the pandemic has exacerbated Britain’s housing divide, according to new Resolution Foundation research. The report, based on a YouGov survey of 6,005 UK adults aged…
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New research from challenger credit bureau, Credit Kudos, has revealed the strain that financial pressures can put on people’s mental health. With many people losing their jobs or being furloughed, people need access to affordable credit to help them deal with the financial difficulties posed by the COVID-19 crisis. The research reveals a quarter (26%)…
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Analytics and decision management provider FICO has announced that it has partnered with OpenWrks – provider of Open Banking based digital engagement applications. Under the partnership, FICO plans to combine OpenWrks financial budgeting and conversational AI technology with FICO’s market-leading integrated collections and omni-channel platform to assist creditors in making the most appropriate customer decisions…
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New research from Comparethemarket.com has found that 75% of households have managed to save £300 during lockdown, but the long-term financial impact of pandemic remains a worry. The research has found that households’ financial confidence, with signs that the UK may have moved past its peak in financial anxiety for the short-term. According to the…
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The Intermediary Mortgage Lenders Association (IMLA) is urging the government to assess the impact of post-financial crisis regulatory changes and consider easing these restrictions to help first time homebuyers lead the economic recovery in the wake of the COVID-19 pandemic. In a new report from the trade body (First time buyers: is the growth sustainable?), IMLA suggests current…
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RBS will repay around £2.2 million in charges and interest to approximately 36,000 customers who went into or attempted to go into unarranged overdraft without first sending an alert to them. The bank failed to send accurate text warnings to customers, from February 2018 until December 2019, and has now agreed to fully repay the…
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New research from Citizens Advice has shown that four in ten (41%) of those in the shielded group have lost at least 20% of their income since the coronavirus outbreak began. More than a quarter (27%) have lost 60% of their income or more. The charity has supported thousands of workers with underlying health conditions,…
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Young people are relying on non-traditional forms of credit, such as Buy Now Pay Later schemes (BNPL), to cover their finances during lockdown as a result of COVID-19. New research from comparethemarket.com reveals that nearly a quarter (23%) of 18-24 year-olds are more likely to use BNPL to fund purchases since the government lockdown. While…
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Essential spend in April fell by 6% compared to last year, as the country spent its first full month in lockdown, data from Lloyds Bank has shown. Heeding the Government’s ‘Stay at Home’ message, the overall dip in essential spend in April was driven by a drop in money spent on travel. The amount usually…
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Latest figures from UK Finance show 1.82 million mortgage payment holidays have been issued as of 20th May 2020 – equivalent to one in six mortgages issued by lenders. UK Finance says Lenders have welcome the FCA’s draft guidance consultation published today, and the PRA’s related publication, on the next steps for those borrowers already on…
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