Credit, Collections & Insolvency News
Latest analysis of credit card data from FICO has painted a picture of considerable consumer financial volatility as the dual pressures of higher inflation and higher interest rates squeeze funds. FICO says the ongoing inflationary challenges faced by consumers continue to be reflected in higher levels of credit card spend, compared to 2022 – with…
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5.7 million low-income households are having to cut down or skip meals because they don’t have enough money for food, while the number going without items such as food, heating or basic toiletries (63%) has remained around 7 million for more than a year according to latest analysis by Joseph Rowntree Foundation (JRF). The research…
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In a new report published on Government’s energy bills support scheme, the Public Accounts Committee says it took too long to get support to some of those most in need. While support schemes were introduced quickly, the Government did not have the bandwidth to make sure support reached all groups in a timely fashion. In…
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Domestic energy supplier E.ON Next has been ordered by Ofgem to pay £5 million in compensation for poor standards of customer service. Throughout 2022, energy regulator Ofgem conducted a series of Market Compliance Reviews (MCRs), examining energy suppliers’ performance on key areas across the sector in a bid to drive up standards. One of these…
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New figures released by the Finance & Leasing Association (FLA) have shown that second charge mortgage new business volumes fell by 22% in April 2023 Commenting on the latest new business figures for the second charge mortgage market, Fiona Hoyle, Director of Consumer & Mortgage Finance and Inclusion at the Finance & Leasing Association (FLA),…
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An estimated 5.5 million people (one in ten adults) were behind on their energy bills in April, an increase of 2.1 million compared to March 2022 according to new research from the Money Advice Trust, the charity that runs National Debtline and Business Debtline. The charity’s Under Pressure research, based on an Opinium survey…
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Energy retailers have been urged to simplify the language used in consumer communications after a survey found the majority of customers (76%) are confused by their bill. Consumer group Which?’s research found almost half (48%) of all consumers said they experience a negative emotional response when reading their bills. The research that almost half (47%)…
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Cost of living pressures have affected UK consumers more than their European counterparts, according to the latest EY UK Future Consumer Index. The twelfth edition of EY’s survey of 1,000 UK consumers found that 62% of UK consumers say they are ‘extremely concerned’ by the cost-of-living squeeze, compared with 50% in the rest of Europe.…
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Households have faced more than a year of high inflation and rising interest rates and the impact of both is becoming more apparent according to new UK Finance data. The research found that squeezed budgets and higher financing costs are bearing down more heavily on affordability for prospective house buyers. The same pressures are, as…
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The Financial Conduct Authority (FCA) has announced a ban on referral fees for debt packager firms. The ban applies to all new debt packager firms and will come into play for existing firms in October 2023, and follows a review that found evidence of debt packagers appearing to manipulate customers’ details so that they meet…
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Lenders are being urged to help their customers who are facing financial difficulty to take a proactive approach to the cost-of-living crisis to help prevent unmanageable debt and a deepening of stress-induced mental health crises, before they occur. TDX and Equifax’s say that it’s recommendations are supported by partners including UK Mortgages and the Centre…
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Here is an overview of The Money Charity’s latest statistics for May 2023 Personal debt in the UK People in the UK owed £1,839.7 billion at the end of March 2023. The average total debt per household, including mortgages, was £65,513 and per adult was £34,589, around 105.3% of average earnings. Net mortgage lending shrunk by…
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Temporary measures forcing lenders to offer greater support to borrowers in financial difficulties could become permanent, under new proposals announced by the Financial Conduct Authority (FCA). The FCA also announced that 17 lenders will pay up to £47 million in redress to financially-distressed borrowers, after failing to offer appropriate support. The payments will be made…
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