Credit, Collections & Insolvency News
Financial cooperative, Strathkelvin Credit Union has entered administration. Based in Dunbartonshire, the credit union, founded in January 1996, acts as a financial cooperative offering its members financial security through saving and borrowing. In 2019 SCU recorded a turnover of £86,000. The Credit Union entered administration on 22nd February as a result of regulatory breaches rendering the…
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A new survey from UK fintech Pave shows the vast majority of Buy Now Pay Later (BNPL) customers are unclear about the impact of BNPL on their credit scores, leading to the majority of customers to say they were worried about its impact. The research found that 78% of respondents (18-44) who have used Buy…
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Morses Club an established provider of non-standard financial services has announced that pre-tax profits will be up to 30% lower than expected. The company says that its cost base of the Home Consumer Credit (HCC) division has been impacted in recent days by a rapid increase in claim volumes submitted via claims management companies. As…
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The Financial Conduct Authority (FCA) has announced that it has secured changes to potentially unfair and unclear terms in the contracts of buy now pay later (BNPL) providers Clearpay, Klarna, Laybuy and Openpay. The FCA says that it was concerned there was a potential risk of harm to consumers as a result of the way…
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High-cost lender TFS Loans has collapsed into administration following claims of ‘unaffordable lending.’ The company was a guarantor lender, requiring a family member or friend to cover repayments if the borrower couldn’t. TFS would lend between £3,000 and £15,000 on a one to five-year term basis at between 30% and 70% interest, with a representative…
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Global information and insights provider TransUnion has announced it is set to accept Buy Now, Pay Later (BNPL) finance into UK consumer credit files, becoming the first credit reference agency in the UK to do so. Following extensive research and product innovation, buy now, pay later finance – also known as deferred payment credit –…
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The Financial Services Compensation Scheme (FSCS) has named 12 firms to be in default and out of business, including one credit union and one mortgage adviser firm. All Flintshire Credit Union and mortgage advisor firm, Midland Independent Financial service (formerly The Mortgage Shop) are listed amongst the 12 firms the FSCS believes are unable to…
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New data has revealed that the majority of credit card users are planning to use Buy Now, Pay Later (BNPL) services this year. The survey, by Splitit, investigated credit card holders’ attitudes towards spending, specifically around BNPL. The data shows that over half of respondents (54%) are planning on using BNPL services in 2022, with…
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High-cost short-term lender, Ounapuu (formerly Ferratum) has entered into a Creditors’ Voluntary Liquidation. The company was placed into a Creditors’ Voluntary Liquidation. Paul Boyle, David Clements and Anthony Murphy of Harrisons Business Recovery & Insolvency (London) were appointed as Joint Liquidators. The firm’s name was changed from Ferratum UK Limited to Ounapuu on 4th November…
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The Financial Conduct Authority (FCA) says competition in retail banking is growing, with a shift from large banks to small businesses. In an update to its 2018 strategic review of retail banking, the FCA says the increase in competition is providing more choice and lower prices for consumers. The analysis shows that the share of…
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The amount of Christmas shopping put on buy-now, pay-later (BNPL) rose by £1billion in 2021 according to new analysis by Credit Karma. The research found that as Banks and retailers continue to jump on the increasing popularity of the BNPL payment method, with its high approval rates, 52% of consumers view BNPL as ‘easy credit.’…
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New research by Lowell has highlighted a huge age discrepancy in credit score attitudes. The research found that almost one-third (32%) of the 16–24-year-olds who know how to check their credit score, check it multiple times a month. According to the data, those aged 55 and over (15%) are most likely to check their credit…
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Consumers using Buy Now, Pay Later (BNPL) are much more likely to be struggling according to latest research by debt charity StepChange. In response to the HM Treasury’s consultation on how to regulate BNPL StepChange is pointing to clear evidence that BNPL products are being widely used by people experiencing financial difficulty. For example, consumers…
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