Industry News

Over half of those in debt not seeking help

Only 4 in 10 struggling with finances seek assistance

A poll from Nationwide Building Society has found that most of those struggling with debt manage it alone. 
 

Number of IVAs reached highest quarter total on record

Individual Voluntary Arrangements reach highest levels since they were introduced in 1986

 
A release from the Insolvency Service has shown that the number of people becoming insolvent in England and Wales has reached the highest levels since 2012. There were 27,388 individual insolvencies in Q1 2018, which is 8.5% higher than in the same quarter the previous year.
 

Loan fee scam alert

FCA warning as £3.5 million lost to loan fee fraud in 2017

 

The FCA has issued a warning that there is an increased risk of scammers targeting those searching for a loan.

 

Bank of England raises bank rate

The Bank of England has raised the official bank rate from 0.25% to 0.5%.

The decision, which was passed by the central bank’s Monetary Policy Committee by 7 votes to 2, is the first rate rise in over a decade.

Governor of the Bank of England Mark Carney stated that Brexit negotiations would play a crucial role in shaping future monetary policy and that future rate rises were likely in order to return inflation to the Bank’s target 2%.

People in debt to be given breathing space

Under new rules being drawn up by Government, people struggling with debt would be given six weeks of breathing space in which to seek advice about their situation.

The plan, which the Treasury is currently consulting on, would see anyone struggling to keep up with their debt repayments exempted from further interest, charges and creditor enforcement action for a period of six weeks so that they can seek advice.

The scheme would only apply to England, Wales and Northern Ireland as Scotland already operates a similar system.

FCA cap on payday loans saves consumers £150 million per year

The Financial Conduct Authority (FCA) has published a report that claims that its regulation of high-cost short-term credit providers has delivered substantial benefits to customers

 
The organisation assessed the effectiveness of the payday loan price cap which it introduced in 2015. The review found that as well as saving borrowers money, the new rules meant that payday firms were much less likely to lend to customers who cannot afford to repay the loan.
 

Fourteen unlicensed lending companies shut down by High Court

All the companies were involved in unauthorised money lending

 
Following investigations by the Insolvency service it was found that only one of the businesses had ever possessed a consumer credit licence permitting it to operate as a lender, which expired four years ago.
 

Financial Conduct Authority Chief to step down

John Griffith-Jones confirms plan to leave the FCA

 
Chairman of the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), has confirmed that he will leave both organisations at the end of his term of office, on 31 March 2018. 
 

Only 20% of those at risk of crisis debt seek help

New research from the Money Advice Service has found one in six adults are at risk of crisis debt

 
With so many vulnerable to debt problems, there’s a good chance that you know someone struggling with debts. It’s not always easy to notice, but there are clues you can look out for.
 

Is car finance the next borrowing bubble?

A report from the Society of Motor Manufacturers and Traders (SMMT), about 80 per cent of new cars in the UK are sold on Personal Contract Purchases