Credit, Collections & Insolvency News
The Government has announced new legislation will see Buy Now Pay Later (BPNL) lenders fully regulated by the Financial Conduct Authority (FCA), meaning firms will be required to conduct affordability checks on consumers before offering loans. The announcement is backed by brand new reforms as part of the new Consumer Credit Act. The new regulation…
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New research by Compare the Market has found that 937,433 homeowners who took out mortgages in 2023 could benefit from a decline in monthly payments as they come off two-year fixed rate deals that had an average interest rate of 5.06%, according to their analysis based on a Freedom of Information request to the Financial…
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The Bank of England has announced that it has reduced the Bank Rate by 0.25% to 4.25%, marking the second cut this year. The MPC voted 5 to 4 in favour of the cut, with two members preferring to cut rates by 0.5% to 4.0% and two preferring to leave rates unchanged at 4.5%. Commenting on the…
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Complaints to the Financial Ombudsman Service (FOS) regarding banks and credit card companies surged by 76% year-on-year in H2 2024, accounting for 109,155 out of an overall total of 141,846 complaints. This increase is attributed to a rise in financial scams and fraud. Vanquis Bank topped the list with 17,612 new complaints, followed by credit…
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The Government has issued new powers to the Department of Work and Pensions (DWP), which will allow the DWP to recover money directly from the bank accounts of fraudsters who can repay but are wilfully gaming the system in order not to, passed an important stage in the House of Commons as it had its…
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Latetst Financial Conduct Authority (FCA), complaints to financial services firms decreased by 4.3% in the second half of 2024, coming in at 1.78 million. The decline may reflect the positive effects of the FCA’s Consumer Duty, which mandates that firms prioritise customer needs in their operations. The total redress paid also fell by 3% to…
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The Chancellor of the Exchequer Rachel Reeves has announced that Julia Black, Anita Kimber, John Ball and Stéphane Malrait have been appointed as Non–Executive Directors to the Board of the Financial Conduct Authority (FCA). The Chancellor has also confirmed a one-year extension of Richard Lloyd’s second term as a Non-Executive Director on the FCA Board.…
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Long-neglected rules governing capital means-testing in Universal Credit (UC) are undermining other Government policies aimed at encouraging lower-income households to accrue savings, according to new research from the Resolution Foundation. The report notes that the current capital thresholds, which have been frozen in cash terms since 2006, mean that a claimant’s UC entitlement is tapered…
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The Government has announced that it is investing £121 million in quantum technology to tackle crime, fraud, and money laundering. The technology will be used to tackle the first signs of fraud and halting money laundering which could save billions for the economy. The funding is being made available over the next year to expand…
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The Bank of England’s Financial Policy Committee (FPC) has published a report on the health of the UK economy and financial system. The FPC said that the probability of adverse events had risen, and the UK’s open economy was particularly exposed to the market turmoil. The report also noted that UK banks remained well-capitalised and…
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The Financial Ombudsman Service (FOS) has announced that it expects to resolve 270,000 cases in 2025/26, a 20% increase from the previous year. The FOS’ commitment comes despite recent surges in complaints, most notably the influx of cases related to motor finance commission. These account for nearly half of the current stock of around 190,000…
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Consumer credit borrowing rose to £1.4 billion, higher than the average gain of £1.2 billion over the previous six months according to latest Bank of England data. Consumer credit borrowing by individuals was down from £1.7 billion in the previous month. Within this, net borrowing through credit cards decreased to £0.8 billion from £1.1 billion.…
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This week, the UK’s Supreme Court will hear a pivotal case regarding potential compensation for millions of motorists affected by unlawful hidden commission payments in the car finance sector. Following a Court of Appeal ruling that deemed such payments illegal without buyer consent, lenders, including major banks, have set aside substantial funds for claims that…
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