June 2013

Debt Advice Foundation welcomes referral of payday lenders to the Competition Commission

National debt charity Debt Advice Foundation has welcomed the announcement by the Office of Fair Trading that the payday lending market is to be referred to the Competition Commission.

The OFT said it "continues to suspect that features of the payday lending market prevent, restrict or distort competition. It considers that these issues go deeper than can be addressed through existing laws and guidance."

Parliamentary Commission on Banking Standards adds its weight to the campaign for better financial education in schools

Tucked away in the report of the Parliamentary Commission on Banking Standards, published this week, was an important endorsement of the need for significant improvements in financial education.

Credit union accounts to be given to all Glasgow’s teenagers

Teenagers in Glasgow are to be given credit union accounts to encourage them to learn money management and help them avoid debt and payday lenders.

The city council has said that it will deposit £10 in a credit union account for all first-year secondary school pupils next year – around 6,000 children – and will continue to do so with all new senior school entrants.  They want to encourage young people to think about saving from an early age.

More of us are using cash, according to the Payments Council

A new report, UK Cash and Cash Machines 2013, suggests that more people used cash in 2012 for their day to day purchases – up around 10% on the previous year.

The number of cash payments (by businesses and individuals) were up from 20.6 billion to 20.8 billion, representing more than half (54%) of all payments.

The report, published by the Payments Council in conjunction with LINK and the UK Cards Association, says this trend suggests people are turning to cash rather than cards to pay for purchases so they can monitor their daily spending.

Students union calls for campus ban on payday loans advertising

The National Union of Students (NUS) has called on universities to ban advertising for payday lenders on campus, following research that suggests some of the short-term, high interest loan companies are targeting vulnerable students.

Four universities have now banned advertisements for payday loans on their sites: University of Northampton, Northumbria University, Swansea University and University of East London.

Debt problems in retirement putting marriages under pressure, finds new research

Older people who find themselves with serious debt worries are twice as likely to find themselves facing divorce, according to new research from the International Longevity Centre and Age-UK.

Retired people find themselves caught between falling pension and savings income and rising prices.  The report found a “statistically significant decrease in quality of life” among older people struggling with debt.