Credit, collections & insolvency news
A third of people (31%) still don’t think that Buy Now Pay Later (BNPL) purchases can lead to debt, however, this jumps to over half (51%) for those aged 18-24 who are a third more likely to use BNPL than the UK average according to research from lender, Creditspring. Almost one in three (29%) of people…
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Almost half of adults (48%) have used Buy Now, Pay Later (BNPL) to spread the cost of purchases. In 2023, 7.4 million more people used BNPL compared to the year before. The increased usage of BNPL, isn’t expected to slow down as we enter the busy festive shopping period, in fact it has become essential…
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Morses Club and sister company Shelby Finance have entered into administration. The two companies provided short-term consumer loans, with Morses Club providing home collect credit and Shelby Finance providing loans online under the ‘Dot Dot Loans’ brand. Ed Boyle and Rob Spence from Interpath Advisory have appointed joint administrators. The Companies have been under sustained…
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Latest research from SunLife has indicated that the Bank of Mum and Dad has handed out £98 billion over the past five years, with parents over the age of 50 helping their children to get onto the property ladder, pay bills and settle debts. The study, which used data from SunLife customers and the Office…
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Latest figures from the Equity Release Council (ERC) analysis showed that the equity release market grew for the first time in 12 months with quarterly increases in both new customers (10%) and total lending (8%). Total lending reached £716 million in Quarter 3 (Q3) loaned to 7,379 new customers and 8,466 returning drawdown customers. The…
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The Financial Conduct Authority (FCA) has taken action against PayPal and QVC after finding potentially unfair and unclear small print in their buy now, pay later (BNPL) contracts. The FCA expressed concern over the impact on customers and prompted the two companies to change their terms. PayPal and QVC voluntarily made their terms easier to…
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Online high-cost short-term lender Novaloans (trading as Cash4UNow) has entered administration. Novaloans Ltd is a family-run business founded in 2011, employed 38 people according to its total exemption. Its offices are at Limewood Business Park, in Seacroft. The Financial Conduct Authority (FCA) has confirmed that the firm is no longer lending. However, all existing loan…
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The Financial Conduct Authority (FCA) says the cost-of-living crunch is pushing people toward payday loans and buy-now pay-later (BNPL) products. In a speech, the regulator’s Chief Executive, Nikhil Rathi, warned that rising prices have pushed people into debt, with many still unable to access financial products. The regulators analysis shows that the number of people…
Read moreMillennials and Gen X said they spent more than Gen Z when it comes to using Buy Now, Pay Later (BNPL) for online shopping over the past 12 months according to the latest Q3 2023 Consumer Pulse survey from a global information and insights company TransUnion. Compared to 54% of Millennials and 39% of Gen…
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Naylors Finance, a high-cost lending firm based in Yorkshire has entered into administration. Ed Boyle and Howard Smith of Interpath were appointed Joint Administrators. The firm is no longer lending. All existing loan agreements remain in place and the Joint Administrators will provide updates to customers as soon as possible. The firm’s administration does not…
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New specialist lender, Perenna, has secured an unrestricted banking licence from Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). allowing it to introduce its long-term fixed rate mortgage products to the UK. Perenn is the first UK start-up to secure an unrestricted bank licence in 2023, will offer 20- or 30-year mortgages and an…
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New research by the Money and Pensions Services (MaPS) has found that one in five (almost two million) Buy Now Pay Later (BNPL) are using it for essential items such as groceries (11%), toiletries and hygiene (8%), household bills (5%) and fuel (4%). There are an estimated 10.1 million BNPL customers in the UK and…
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Latest Bank of England data has found that the number of adults who are members of Credit Unions has passed two million for the first time. The number of adult members of Credit Unions grew by 1.3% in 2023 Quarter 1 (Q1). The total value of net liabilities in arrears grew by 10% to £139.8…
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