Credit, Collections & Insolvency News
Debt purchaser Arrow Global has announced pre-tax losses of £114.8 million for 2020 loss as lockdown restrictions across the UK and Europe affected cash collections and portfolio acquisitions. The pre-tax loss for the year to 31 December 2020, is down from a £51.3 million profit in 2019. The group said the loss was driven by…
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Over-55s have used housing equity to clear more than £612 million of unsecured debt in 2020, according to new data analysis from Key shows. Credit cards (av. £8,500), overdrafts (av. £2,000) and loan balances (£11,700) were most commonly repaid as people looked to manage their retirement income by reducing outgoings. Around a fifth (18%) of…
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Two-thirds (66%) of consumers wait over a year to do something about their debts according to new research from debt advice specialist PayPlan. The report also shows that 73% feel embarrassed to reach out for debt support and A third of people put off help as they don’t want their friends or family to find out…
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Marking the start of the Debt Awareness Week, debt charity StepChange is encouraging people to take TheFirstStep towards getting debt help, by opening up the conversation around debt and removing the stigma that can surround financial problems. Debt Awareness Week is the charity’s annual campaign to raise awareness of problem debt and remind people that…
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Citizens Advice is warning that debt is the looming problem of the pandemic. As the one-year marker since lockdown began approaches, the charity has charted a worrying increase in the need for advice, food bank referrals and charitable grants. The charity’s 12 months of pandemic data maps the waves of demand for different types of…
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Families with children have been hit hardest financially by the Covid-19 pandemic according to research by Standard Life Foundation. The analysis published finds that over a quarter of UK families (27%) are currently living on a reduced income as a direct result of a pandemic-related loss of earnings, compared with 17% of households without children.…
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The Insolvency Service has published its latest figures which indicates personal insolvencies in England & Wales fell by 18% to 6,816 in February 2021 compared to January’s figure of 8,321, and were 21% lower than February 2020’s figure of 8,574. The number of bankruptcies in February 2021 was 898, while the number of Debt Relief…
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Latest figures from Accountant in Bankruptcy (AiB) have shown that Scottish personal insolvencies fell by 41.3% that in the previous 12 months. The figures showed that were 7,967 personal insolvencies in the 12 months to February 2021 (inclusive), 5,608 fewer than in the previous 12 months. Bankruptcies decreased by 48.5% in the 12 months to…
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Latest statistics from the Insolvency Service have shown that personal and business insolvencies continue to remain low in comparison to previous years. In February 2021 there were 144 individual personal insolvencies in Northern Ireland, 46% lower than February 2020; this consisted of 107 IVAs, 27 DROs and 10 bankruptcies. Business insolvency figures In February 2021…
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New reforms by energy regulator Ofgem could soon call on suppliers to hand £1.4billion in customer credit back to households under plans to stop energy companies from holding on to customer credit balances. Ofgem is concerned that some suppliers may be using customers’ surplus credit balances, which tend to build up over the summer when…
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StepChange has today warned that 150,000 private renters are at risk of eviction when restrictions are lifted as a result of mounting covid-related rent debts. The warning comes as the charity launches its Covid Debt Rescue campaign. The campaign is calling for a package of emergency financial support to help renters keep their homes while…
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UK households have repaid a record £17.6 billion of mortgage debt in just three months, equivalent to £192m a day, as savings made under lockdown helped some existing borrowers to reduce their debt commitments. Analysis of official data by the Equity Release Council, the representative trade body for the equity release sector, shows a surge in…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in January 2021 by 34% compared with the same month in 2020. The retail store and online credit sector reported new business 1% lower in January than in the same month in 2020. By contrast, credit card and…
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