October 2015

Latest figures show modest increase in insolvencies

The Insolvency Service’s latest statistical release, covering the period July to September 2015, shows an increase in the number of insolvencies for the first time in five quarters.  The 2.8% overall increase to 19,683 in Q3 was driven principally by a higher IVA volumes, which rose by 9%.

Payday lender Dollar agrees to pay £15.4m in compensation following FCA investigation

Dollar Financial UK, the owner of a number of short-term lending brands including The Money Shop and Payday UK, has agreed to pay £15.4m in compensation to its customers after a review by the Financial Conduct Authority (FCA).

The compensation relates to 147,000 customers, who the FCA believed had suffered as a result of the company’s affordability checks, debt collection practices and system errors.

This is the third FCA investigation in to the short-term lending sector in the space of twelve months following reviews of both Wonga and Cash Genie.

Changes to Debt Relief Order criteria come into effect

Today sees the introduction of new Debt Relief Order (DRO) criteria in England and Wales.

The changes include the maximum qualifying debt level increasing from £15,000 to £20,000 and the non-vehicle asset limit rising from £300 to £1,000.

Commenting on the changes, David Rodger, Chief Executive of Debt Advice Foundation, said "The charity welcomes the changes to Debt Relief Order eligibility, which hopefully should enable many more people to access this important form of financial remedy in the future."