Credit, Collections & Insolvency News
Membership of Credit Unions has risen to an all-time high, with these financial institutions lending more money than ever as the cost-of-living crisis worsens. The Bank of England’s latest data shows that over 1.9 million people in the UK are now members of a Credit Union. Borrowing from Credit Unions is particularly common in Northern…
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Amigo Loans has been granted court approval to pay compensation to past customers’ mis-sold loans and a chance to stay in business and resume lending. The High Court approved a new scheme that will see the sub-prime lender pay a higher proportion of the value of claims to customers than previously proposed. Commenting on the…
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New research by Hargreaves Lansdown says that one in ten use Buy Now Pay Later (BNPL) to pay for essentials whilst a further one in four would consider using it. The research also found that one in three people have either used Buy Now Pay Later to buy things like furniture, technology and white goods,…
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The Financial Conduct Authority (FCA) is warning lenders and brokers to stop using misleading terms in their advertising or face regulatory action. The FCA says that the increased cost of living means that more people may take out loans. Marketing that does not give clear information and warnings about the potential consequences of borrowing puts…
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Buy now, pay later (BNPL) specialist, Klarna has announced that it will start reporting UK customer debts to credit agencies for the first time next month, in a move that could affect shoppers’ credit ratings from 2023. The move is understood to be the result of two years of talks with the credit reference companies…
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Instagram influencers who were paid to endorse buy-now, pay-later (BNPL) fuelled more than £652 million in borrowing amongst followers trying to replicate their lifestyles according to research by Credit Karma. The company reviewed buy-now, pay-later sponsored posts by the UK’s biggest influencers finding that an individual would need to spend an average of £1.8K to…
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The use of Buy Now, Pay Later (BNPL) services has increased b 64%, according to research by Snoop. The company has released its latest UK Consumer Spending Snapshot, based on transactions from over 100,000 customers spanning April 2021 to March 2022, highlighting a striking picture of a nation in the grip of the worst cost-of-living…
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New research has found that 81% of borrowers are unaware that Buy Now, Pay Later’ (BNPL) schemes are unregulated, placing them at major risk of falling into debt. The research by Creditspring found that more than half of UK adults (53%) don’t know that BNPL schemes can lead to debt if scheduled payments are missed…
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New research, by card issuing platform Marqeta, has indicated that nearly eight in ten (79%) were denied a loan say outdated affordability criteria was a key factor. The data from a survey of European consumers on their attitudes and experiences of lending shows that many consumers still feel frozen out of the lending bubble, held…
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Provident Financial has reported pre-tax profits that are marginally ahead of market expectations as it continues to reposition and rebuild the business. The business generated adjusted pre-tax profits of £64.8 million, compared with a £54.6 million loss in 2020. Malcolm Le May, Chief Executive Officer, said “I am pleased to report that the Group’s financial…
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Loans at Home a subsidiary of Non-Standard Finance (NSF) has entered administration. The doorstep lender has applied for administration following extensive discussions with the Financial Conduct Authority (FCA). In a company statement, NSF said that the Directors of SD Taylor (trading as ‘Loans at Home’) reluctantly concluded that the Loans at Home business is no…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 51% in January 2022 compared with the same month in 2021. In the twelve months to January 2022, new business grew by 23% compared with the same period in 2021. The credit card and personal loan sectors…
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Amigo Loans has been given a seal of approval from the Financial Conduct Authority (FCA) for a customer compensation claims scheme, Shares in Amigo tumbled by 55% last May after the High Court stated that it was ‘not satisfied that the court should sanction the scheme’pushing back against Amigo’s original proposal to cap customer compensation claims.…
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