Credit, Collections & Insolvency News
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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Millions of people in communities across the UK will see their ability to access cash protected by new powers set out by the Government. Under the new rules, the financial regulator – the Financial Conduct Authority (FCA) – will be granted new powers over the UK’s largest banks and building societies, to ensure that cash…
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The Financial Conduct Authority (FCA) is set to introduce new powers to more swiftly cancel or change what regulated activities firms are permitted to do. The new power is available following a change in the law allowing the FCA to streamline and shorten the removals process. The FCA will provide a firm with two warnings if it believes it is not using…
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New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 19% in March 2022 compared with the same month in 2021. In Q1 2022 overall, new business was 34% higher than in the same quarter in 2021. The credit card and personal loan sectors together reported…
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The Financial Policy Committee (FPC) has announced a proposal to withdraw its mortgage affordability recommendation. The current requirement requires mortgage lenders to assess affordability by applying an interest rate stress test to determine whether borrowers could still afford their mortgage payments if their mortgage rate were to increase by three per cent. In a statement,…
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The Payment Systems Regulator (PSR) has taken action against National Westminster Bank Plc, Royal Bank of Scotland Plc, Ulster Bank Ltd and Coutts & Company for overcharging interchange fees on credit cards. The regulator’s action has made sure that those who were overcharged by the banks got their money back. The PSR has also fined…
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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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The Bank of England Monetary Policy Committee has raised rates to 1%, the highest in 13 years. The Bank also warned that the cost of living crisis could push the economy into recession this year. The Bank’s Monetary Policy Committee (MPC) voted to raise the base rate from 0.75% to 1%. Three of the nine-strong…
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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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New research by TotallyMoney has found that 2 million mortgage borrowers could face an average payment increase of over £1,000 per year. The research found that a 1% Bank of England (BoE) interest rate rise would increase mortgage payments by £99 per month or £1,188 per year for a 75% LTV mortgage on the average…
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The Lending Standards Board (LSB) has published a series of updates to the Contingent Reimbursement Model Code (the CRM Code) to further strengthen what is the only set of protections of its kind for tackling Authorised Push Payment (APP) scams. The three most significant updates to the Code will help improve customers’ understanding of how…
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New IFS research has found that a blanket minimum eligibility requirement (MER) for access to student loans would be a highly imperfect way of improving student outcomes. It would increase the already large socio-economic gaps in higher education and would disproportionally affect ethnic minority students. The government recently announced a consultation on changes to the…
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Research by consumer watchdog Which? has revealed that 4,685 bank branches have closed over the last seven years with a further 226 set to disappear by the end of year – accounting for almost half of the country’s network. According to the study, the elderly and those in rural areas who most relied on cash…
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