Credit, Collections & Insolvency News
The Bank of Mum and Dad (BoMaD) will be a driving force behind the recovery of Britain’s housing market as buyers struggle with the economic impact of the COVID-19 crisis, new research from Legal & General and Cebr shows. Nearly one in four housing transactions (23%) will be backed by ‘BoMaD’ in 2020, with a…
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As the ban on evictions ends in just over three weeks, six leading organisations representing tenants, landlords and letting agents have united to urge the government to provide financial help to private renters plunged into ‘Covid rent arrears’ through no fault of their own. The coalition, which includes Shelter, the National Residential Landlords Association, ARLA…
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Around two million borrowers have taken a mortgage holiday, according to latest figures from UK Finance representing about one in six mortgage holders. Since the launch of the payment deferral schemes, lenders have granted a total of two million mortgage payment deferrals, 1.05 million credit card payment deferrals and 707,000 personal loan payment deferrals, as…
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The Financial Conduct Authority (FCA) has outlined proposals to ensure that firms provide tailored support to mortgage borrowers who continue to face payment difficulties due to coronavirus. During the initial phase of the pandemic, payment holidays provided mortgage borrowers with immediate and temporary support. They have helped millions of consumers through the immediate impacts of…
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One in five consumers have no idea how much debt they’re in and don’t want to know either. A poll of 2,000 adults commissioned by Skipton Building Society found 17 per cent would rather not find out the exact figure they owe, and 21 per cent don’t want to worry about something they feel they…
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Debt charity, The Money Advice Trust has welcomed the government’s last-minute announcement of public health guidance for bailiff visits but says that concerns around the impact of bailiff action on households dealing with the financial consequences of Covid-19 remain unaddressed. On Friday evening the Ministry of Justice published public health guidance for bailiffs, now known…
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One in nine people, the equivalent of six million people across the UK, have reported falling behind on household bills because of coronavirus according to new research from Citizens Advice. With protections against eviction for renters and the ban on face-to-face bailiff collection both ending this weekend, the charity warns that many of those struggling…
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The Money Advice Trust, the charity that runs National Debtline and Business Debtline, has responded to new official figures that show £3.6 billion in council tax was owed before the Covid-19 outbreak, by urging central government to make changes to the way local authorities are able to collect council tax debt. The call comes as…
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New data released by UK Finance has revealed that the final month of full lockdown saw the annual growth rate of outstanding credit card balances fall by 12.6 per cent in the year to May, as consumers continued to pay down their credit card bills. May also saw credit card spending by UK cardholders slowly…
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New research from MoneySuperMarket reveals that graduates are leaving university with additional non-student loan debts worth £3,770 – up £209 on £3,561 in 2019. Following last week’s A-level exam results, for those students who received the required grades for university and start to plan for their academic year, the UK’s leading price comparison spoke to recent graduates…
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Household finances in the UK fell more sharply in August than the previous month after rising levels of unemployment hit average incomes and persuaded millions of families to cut back on spending according to the latest IHS Markit UK household finance index. The finance index was down following steady increases through May, June and July,…
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Consumer group Which? has urged the Financial Conduct Authority (FCA) to extend loan repayment holidays and interest-free overdrafts until January 2021, saying demand for support will surge after the job retention scheme winds up on 31st October. The consumer champion’s submission to the FCA’s consultation makes four key recommendations that the regulator should adopt to…
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Digital payment solutions provider, PayPoint has launched a new collection tool for the motor finance sector. Named PayByLink, the platform allows lenders to engage with customers on a personal level, sensitively and responsibly, collecting due or arrears payments with care. With the majority of finance companies granting payment freezes to customers, PayByLink gives lenders an…
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