Credit, Collections & Insolvency News
New research by Yapily has indicated that cost of living rise has driven a move for consumers to use buy now, pay later (BNPL) schemes rather than dipping into overdrafts The research found more than a quarter of consumers turned to buy now, pay later services in the past year compared with 18% who had used…
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Homeowners took out 13,452 new equity release plans in the third quarter with total lending hitting a record £1.7 billion, according to the Equity Release Council’s latest statistics. A record number of homeowners aged over 55 have turned to equity release to support their cash-strapped families through the cost of living crisis. According to the…
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Sub-prime lender Morses Club has warned that it will enter insolvency unless it agrees on a Scheme of Arrangement. The company has said it has suspended processing claims made against its ‘unaffordable’ loans while it pursues the potential use of a such a Scheme. In a company statement, Morses Club said it is racking up…
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Soaring energy, food and fuel prices have forced 1.2 million UK adults (2%) to turn to unscrupulous loan sharks in the last 12 months according to research from the Vulnerability Registration Service. Released during National Stop Loan Sharks Week, the research also revealed that this picture is twice as bad for the most vulnerable in society, with…
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The Birmingham Inner Circle Community Credit Union has entered administration following regulatory breaches under the PRA/FCA prudential and conduct rules and solvency issues. Founded in July 2002, the credit union is based in Ladywood, Birmingham and acts as a financial cooperative, offering its members financial security through saving and borrowing. In 2020 it recorded a…
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Gloucestershire Credit Union Limited has been placed into administration and has now stopped trading. James Sleight and Peter Hart of PKF Geoffrey Martin & Co Limited have been appointed as joint administrators. Gloucestershire Credit Union is a financial co-operative owned by its members. It is regulated as a deposit taker by the Prudential Regulation Authority…
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Analysis from Freedom Finance has found that membership of Credit Unions continues to rise amid a growing hunt for affordable credit products as the cost of borrowing rises sharply and the cost-of-living crisis worsens. The latest data from the Bank of England for the first quarter of 2022 finds that 1.93 million people in the…
Read moreKey has agreed to work collaboratively with MorganAsh on a pilot scheme to use its new adviser tool to support later life lending advisers in identifying, assessing and managing client vulnerability. MorganAsh launched its MorganAsh Resilience System (MARS) in April,but had been working with Key since last year to test and refine the interaction with…
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The Financial Conduct Authority (FCA) has warned firms that offer Buy Now Pay Later (BNPL) products that although some agreements are unregulated after finding that some lenders were using web adverts and posts from social media influencers that are breaking rules. The FCA also reminded the businesses that the financial promotions of all BNPL products…
Read moreA new study from Juniper Research has predicted that the number of BNPL (Buy Now Pay Later) users will surpass 900 million globally by 2027, increasing from 360 million in 2022. The research says that the substantial growth of 157% will be driven by the anticipated economic downturn, which will increase the demand for low-cost…
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Latest quarterly figures from the Equity Release Council have found equity release lending reached a new quarterly high of £1.6 billion in Q2. The rise is the fourth consecutive quarterly period to close with record lending eith the total amount released in the first six months of 2022 surpassing £3.1 billon, a 36 per cent…
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New research from Aviva suggests there is a growing tendency among older consumers to use the wealth held in their property to help younger generations become first time buyers. The research found that homeowners, particularly those who are mortgage-free, are planning to use investments, as well as their property, to help other family members move…
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The Financial Counduct Authority (FCA) has issued a Decision Notice to One Life Funeral Planning Ltd (One Life) refusing the firm’s application for authorisation. One Life could not demonstrate that it was able to meet or comply with the FCA’s regulatory standards. The concerns included the firm having poor sales practices. One Life has until 31 October…
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