Credit, Collections & Insolvency News
The Insolvency Service has published its latest figures which indicates that in August personal insolvencies in England and Wales fell to 6,359 in total when compared to last month’s figure of 7,330 and are significantly lower than August 2019’s figure (8,892). There were 1,332 debt relief orders and 769 bankruptcies in August 2020. There was…
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The Financial Conduct Authority (FCA) has confirmed the support mortgage borrowers will receive if they continue to face payment difficulties due to coronavirus. The FCA has published additional guidance for firms, to ensure that consumers who have benefitted from payment deferrals under the current guidance who still face financial difficulties, as well as those whose…
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Ofgem could save energy consumers a further £1.7 billion during the next set of energy network price controls (RIIO-2), according to new analysis by Citizens Advice. In 2017, research by Citizens Advice found that energy networks would make up to £7.5 billion in unjustified profits over the course of the current price control [see notes…
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Utilities must take urgent action now to help customers avoid escalating debt or face a crisis this winter, according to Baringa Partners. The company has investigated the potential impact of coronavirus on the sector over the coming months and concluded companies face a three-fold increase in typical bad debt charge write-offs. In the report, Baringa…
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The TUC has warned that the government that NHS Test and Trace system risks failure unless ministers boost Statutory Sick Pay (SSP) and ensure everyone is eligible for it. The warning comes as new polling reveals that more than four in ten workers would be plunged into financial hardship if forced to self-isolate for two…
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Consumer spending grew 0.2 per cent year-on-year in August – the first uplift since February 2020 – as Brits enjoyed the last of summer by socialising and holidaying in the UK. Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, has revealed that spending on essential items grew 5.1…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in July 2020 by 9% compared with the same month in 2019, and decreased by 23% in the first seven months of 2020. Retail store and online credit new business grew by 1% in July compared with the…
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New figures released today by the Finance & Leasing Association (FLA) has shown that second charge mortgage new business volumes fell by 64%. Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer & Mortgage Finance at the Finance & Leasing Association (FLA), said “The second charge…
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In the UK, the average consumer owes of £176 per person to Buy Now Pay Later (BNPL) Schemes such as Klarna, Laybuy and Clearpay according to a new report by Money.co.uk In a report titled ‘Shop Now Stress Later’ the report also suggests that as Influential organisations, such as Manchester City have begin to enter…
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UK Finance’s Household Finance Review for Quarter 2 has highlighted that lenders have maintained a cautious approach to underwriting in uncertain times with higher-loan to value (LTV) lending is still taking place and contracted less than the wider market. House purchase lending plummeted in Q2 as the housing market was suspended due to lockdown, with…
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New analysis of card trends during June and July has shown the first signs of payment deterioration with an increase in credit card spending following the lockdown.. The analysis provided by FICO has indicated that after the dramatic fall in average spending on credit cards for January to May 2020 (down 27 percent year on…
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A Standard Life Foundation study of national survey of household finances has shown that of the 3.7million households in the UK granted a bill ‘payment holiday’, over six in ten are already facing financial difficulties and will struggle to repay their debts when these arrangements end. For many, these payment holidays will cease on 31st…
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Household’s borrowing returned to pre-pandemic levels with £3.9 billion net borrowing in July, with increases in both mortgage borrowing and consumer credit, according to the latest Bank of England figures. Household’s consumer credit borrowing increased £1.2 billion in July, following four months of net repayments. The interest rate on new consumer credit borrowing increased 22…
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