Credit, Collections & Insolvency News
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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The High Court Enforcement Officers Association has adopted a new best practice plan for post-lockdown enforcement activity across England and Wales over the coming weeks and months. The post-lockdown plan, entitled “A Flexible and Sympathetic Approach to Enforcement”, sets out the principles, working practices and behaviours that all High Court Enforcement Officers (HCEO’s) and representatives…
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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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The Association of British Credit Unions Limited (ABCUL) has called on the Insolvency Service and the Insolvency Practitioners’ Association (IPA) to stop insolvency firms making money out of those disadvantaged by the coronavirus. Last week the largest provider of IVAs, Creditfix, wrote to creditors asking them to approve a £84.12 fee on each of their…
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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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Customers facing temporary financial difficulties due to the coronavirus have been granted almost 1.5 million payment holidays by lenders on their credit cards and personal loans according to latest figures from UK Finance. As of 21st May, 877,800 customer accounts had been given a payment freeze on their credit card. This is an increase of…
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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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Nationwide Building Society has pledged to suspend repossessions of borrower’s homes for the next 12 months as part of a packet of measures to support customers. Nationwide says it will offer borrowers flexibility around repayments, which may include temporarily moving onto interest-only. The lender has announced a five-point support package designed to help protect the homes…
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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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European debt management services specialist Lowell has announced its results for the quarter ending 31st March 2020. The results show Lowell’s cash income increased seven percent to £952 million, from £892 million when compared with Q1 2019, while cash EBITDA also rose 14 percent to £508 million, from £444 million. Colin Storrar, Group CEO. at…
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