Credit, Collections & Insolvency News
The Financial Conduct Authority (FCA) has set out views on Employer Salary Advance Scheme (ESAS) ESAS are commonly promoted as an alternative to high cost credit and have a broadly similar economic effect. While most of these schemes do not fall under the FCA’s regulation, as they do not meet the definition of credit under…
Read moreUniversal Credit is ‘failing millions of people’ especially the vulnerable, according to a new report from the Lords’ Economic Affairs Committee which said it agreed with the government’s aim for the scheme to bring together multiple benefits into one payment. The Committee proposals for reform’, which calls on the Government to make substantial changes to…
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The Insolvency Service has published its latest figures which indicates that in Quarter 2 (Q2) 2020 personal insolvency numbers increased by 12% (32,153) up from 28,747 in Q1 and by 7% from Q2 2019 (30,076). This is the first quarter that has been properly affected by the lock-down and despite the rise in overall numbers,…
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The Financial Conduct Authority (FCA) has set out new best practice guidance for firms to do more to protect vulnerable consumers. The second consultation is its revised guidance for firms on the fair treatment of customers in vulnerable circumstances, alongside new research on the experiences of vulnerable consumers. More than 24 million people display one…
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A new Ofcom review means that broadband customers who choose not to sign up to contract deals will make total savings of £270 million annually from pricing changes after it was found that broadband firms are failing to protect customers from excessive out-of-contract prices. The communications regulator says that in September, it secured commitments from…
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The Financial Conduct Authority has announced that it will introduce a ban on discretionary commission models. The ban, follows a consultation in October 2019. Currently, some car retailers and motor finance brokers receive a commission that is linked to the interest rate that customers pay – creating an incentive to sell more expensive credit to…
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The Financial Conduct Authority has launched its updated Financial Services (FS) Register – including a simpler design and clearer language. The redesign aims to help consumers protect themselves from harm and will provide a better experience for the Register’s users. The Register – which had more than 7 million unique users in the past year…
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Personal insolvencies are set to rise according to a member survey by insolvency and restructuring trade body R3. The survey found that eight in ten respondents expect personal insolvency numbers to increase within the next 12 months. Nearly half (44.5%) of the respondents to R3’s member survey who work in personal insolvency say they expect…
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People suffering financial, health or emotional problems should be treated fairly and given the right support by phone, broadband and pay-TV providers, under best practice industry guidance issued by communications regulator Ofcom. The regulator says that the coronavirus pandemic has increased the potential for customers’ circumstances to change suddenly and providers are already offering additional…
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With just one month to go until the end of the eviction ban (23rd August), Citizens Advice is warning it has seen a huge surge in private renters worried about arrears. The charity believes that many renters will need financial support to pay back these debts or risk losing their homes. New figures from the…
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The Money and Mental Health Policy Institute is calling for action to ensure people in distress can access ‘life-changing’ debt support as part of the pandemic aftermath The call for action is part of a new report by the charity which explores the challenges people with mental health problems face in accessing debt advice. The report…
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Leading debt and housing organisations have written an open letter to MHCLG minister Robert Jenrick, warning that without urgent action, people will lose their homes when the rental eviction ban lifts on 23rd August 2020. StepChange has joined forces with housing campaign group Generation Rent to urge Robert Jenrick MP to ensure that no-one who…
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The Money Advice Trust and StepChange debt charity say that changes to professional standards proposed by the Joint Insolvency Committee do not go far enough to protect financially vulnerable people from harm. The charities are particularly concerned about the practices of lead generation companies that Individual Voluntary Arrangements (IVA) providers pay for referrals and are…
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