Credit, Collections & Insolvency News
The latest Bank of England household interest rate figures reveal the cost of borrowing continued to increase in June across consumer credit products following a warning from the Financial Conduct Authority (FCA) for people in financial difficulty. The analysis from Freedom Finance found that average credit card rates jumped to 21.43% and are now approaching…
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Analysis from Freedom Finance has found that the retail store and online credit sector experienced its fastest ever start to a year in 2022 and looks set to reach further highs this year, Monthly updates from consumer finance trade body, the Finance & Leasing Association (FLA), show that new business volumes reached £2,120 million in…
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Poor credit scores are putting 20.2 million consumers at risk of paying an extra £693 interest on credit card balances according to new research by TotallyMoney. The credit app has calculated the cost of a poor credit score for those with interest-bearing credit card balances finding that those with a credit card balance of £2,472,…
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Buy now, pay later (BNPL) finance firm, Payl8r, is calling for the adoption of open banking as a legal requirement for credit assessing in the same way that credit checks are, to ensure safer lending for borrowers in the face of rising costs of living. Payl8r says open banking technology connects banks, third parties and…
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Consumers cut back on credit card borrowing in May, according to figures from the Bank of England. Consumer borrowing fell to a four-month low of £800 million in May, from £1.4 billion in April, with May’s total also below the pre-pandemic average of £1bn. Analysis shows that credit card loans accounted for £400 million of…
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The impact of surging property prices throughout the pandemic has reduced housing affordability to the lowest level on record, according to new research by Halifax. The analysis – based on data from the Halifax House Price Index – compared typical house prices to average earnings across the UK. In the first quarter of 2022, the…
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The Financial Conduct Authority (FCA) is using state-of-the-art analytics to scan 100,000 websites a day in a crackdown on scams and fraud. Although the watchdog cannot remove fraudulent sites, it has added almost 2,000 possible scams to its consumer warning list since May 2021- up a third more than during the same time the previous…
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New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 21% in April 2022 compared with the same month in 2021. In the first four months of 2022, new business was 30% higher than in the same period in 2021. The credit card and personal loan sectors…
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Half (48%) the UK public think a key reason more young adults today cannot afford to buy their own home is they spend too much of their income on things like takeaway coffees and food, mobile phones, subscription services like Netflix and holidays abroad, according to a new study by the King’s College. In reality,…
Read moreNew research by Marqeta has indicated that many consumers are frustrated with lending experience and want less jargon and more clarity, with 80% believing that lenders try to obscure the final cost of a loan. The findings part of Marqeta’s new report “Seeking out the alternatives: how consumers are engaging with the lending 3.0 landscape”…
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Apple has announced that it will launch its own Buy Now, Pay Later (BNPL) option. The iPhone maker’s Apple Pay Later service will allow users in the US to pay for purchases in four instalments over six weeks without being charged interest or other fees. The service will be available anywhere that accepts Apple Pay…
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Credit card spending and personal loan borrowing both increased in the first quarter of 2022, returning to pre-Covid trends as the last restrictions were ended according to new analysis by UK Finance. Total credit card spending was £50.4 billion, with March seeing the second highest spending since the pandemic. There was a significant increase in…
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Growth in consumer credit lending is being rapidly outpaced by the Buy Now Pay Later (BNPL) market according new research by Freedom Finance. Industry figures estimate that BNPL lending is likely to increase by 52% to well over £20 billion in 2022 compared to the previous year. The FCA estimates that the industry was worth £2.7…
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