News - Debt Advice Foundation https://www.debtadvicefoundation.org/news/ Debt Advice Foundation is a registered UK debt advice charity offering free, confidential support and advice to anyone worried about loans, credit and debt. Wed, 05 Apr 2023 12:04:42 +0000 en-GB hourly 1 https://www.debtadvicefoundation.org/wp-content/uploads/2020/06/cropped-daf-favicon-32x32.png News - Debt Advice Foundation https://www.debtadvicefoundation.org/news/ 32 32 UK inflation in unexpected rise https://www.debtadvicefoundation.org/news/2023/04/05/uk-inflation-in-unexpected-rise/ Wed, 05 Apr 2023 12:04:34 +0000 https://www.debtadvicefoundation.org/?p=5970 Inflation unexpectedly increased to 10.4% in the year to February 2023 from 10.1% in January. Contributing to the rise in inflation was a UK wide fruit and vegetable shortage, pushing up food prices at the fastest rate in 45 years. Other costs, including alcohol and clothing also rose significantly last month whilst fuel prices continued […]

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Inflation unexpectedly increased to 10.4% in the year to February 2023 from 10.1% in January.

Contributing to the rise in inflation was a UK wide fruit and vegetable shortage, pushing up food prices at the fastest rate in 45 years.

Other costs, including alcohol and clothing also rose significantly last month whilst fuel prices continued to fall.

In response to the increase, the Bank of England increased interest rates to a 14 year high of 4.25% in an attempt to curb the rising costs.

The Bank also stated that, despite the recent increases, it expects inflation to fall by the end of the year as energy prices continue to come down.

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Bank of England base rate increases to 4.25%. https://www.debtadvicefoundation.org/news/2023/03/23/bank-of-england-base-rate-increases-to-4-25/ Thu, 23 Mar 2023 17:47:11 +0000 https://www.debtadvicefoundation.org/?p=5961 The Bank of England has raised the bank rate from 4% to 4.25%. The bank said that the increase, which the monetary policy committee voted in favour of by a majority of seven to two, is because “cost and price pressures have remained elevated”. The new rate, which is the highest level in 14 years, […]

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The Bank of England has raised the bank rate from 4% to 4.25%.

The bank said that the increase, which the monetary policy committee voted in favour of by a majority of seven to two, is because “cost and price pressures have remained elevated”.

The new rate, which is the highest level in 14 years, is in response to recent unanticipated increases in inflation caused by food shortages.

The increase is likely to impact borrowers, particularly those with variable rate and tracker mortgages, whilst potentially improving returns for savers.

The Bank said that it expects inflation to come down in the near future as the energy prices, a significant contributor to inflation would “turn negative” by the end of the year.

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FCA proposed ban on debt packagers https://www.debtadvicefoundation.org/news/2023/02/10/fca-proposed-ban-on-debt-packagers/ Fri, 10 Feb 2023 15:06:18 +0000 https://www.debtadvicefoundation.org/?p=5825 The Financial Conduct Authority (FCA), the UK’s financial watchdog, has proposed a ban on debt packagers. Debt packagers are third-party marketers, which are paid a commission for referring customers to fee charging debt management firms. The commission can be substantial and has led to debt packagers steering clients towards potentially unsuitable debt solutions. The proposed […]

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The Financial Conduct Authority (FCA), the UK’s financial watchdog, has proposed a ban on debt packagers. Debt packagers are third-party marketers, which are paid a commission for referring customers to fee charging debt management firms. The commission can be substantial and has led to debt packagers steering clients towards potentially unsuitable debt solutions.

The proposed ban would prohibit firms from paying commissions to these lead generators, reducing the incentives for debt packagers to engage in predatory practices. The ban is expected to reduce the overall number of clients being sold unsuitable debt solutions and protect vulnerable consumers from being exposed to harmful financial products.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:
‘Many people are facing pressures on their finances due to the rising the cost of living, so it’s crucial they get good quality debt advice.
‘Unsuitable or poor advice can really harm people’s financial lives. We want to stop this harm by removing the conflict of interest between firms giving advice in the customer’s best interest and recommending an option that makes firms more money.’

Consumer advocacy groups have welcomed the proposed ban, stating that it will ensure that consumers receive the debt-relief services they need in a safe and responsible manner. The FCA is currently reviewing the proposal and is expected to make a final decision in the coming months.

The consultation is open until 2nd March 2023. More information can be found here.

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CCJ’s and claimant details – A lengthy tale https://www.debtadvicefoundation.org/news/2023/01/24/ccjs-and-claimant-details-a-lengthy-tale/ Tue, 24 Jan 2023 09:53:51 +0000 https://www.debtadvicefoundation.org/?p=5749 As a debt charity we answer lots of questions about debt, but one of the most common questions we answer is about Count Court Judgments (CCJ) and how to find the claimant details. For the majority we speak to, they find out they have a CCJ when they apply for something, a property (renting or […]

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As a debt charity we answer lots of questions about debt, but one of the most common questions we answer is about Count Court Judgments (CCJ) and how to find the claimant details.

For the majority we speak to, they find out they have a CCJ when they apply for something, a property (renting or a mortgage) or they have applied for a job and have been told they have an unsatisfied CCJ showing on their credit record. This can be a huge problem and throw a spanner in the works of even the best laid plans.

You would expect finding the claimant details in today’s digital world to be as simple as clicking a button, but alas, finding out who has been awarded a judgment against you is still a lengthy and archaic process. Given the impact of a CCJ, especially the long term effect if you have no idea one has been issued against you, it would seem appropriate to make this information available from the onset.

So how do you find out about a judgement?

The first thing you need is the reference number for the case. You can find this a couple of ways.

Firstly, you can check your credit files for free using ClearScore, Credit Karma or Credit Club (a quick Google search will get you there). If you look under the public records section of your full report, it should give you the details such as the case reference, the amount, the court and the status of the judgment.
In some instances, the details do not show on your credit files. If this is the case, you can check the register of fines and judgments for England & Wales which is through a website called Trust Online. The downside to doing it this way, is that there is a small cost of between £6-£10 per search. If you have had different addresses, you may need more than one search, so it is always worthwhile checking your credit files first for free.

Once you have the reference number and you know the name of the issuing court you can find out who the claimant is. For most, the issuing court will be Northampton County Court Business Centre. This is the bulk processing centre for most of the CCJ’s in England & Wales. If you have a judgment for a consumer credit debt (a loan, credit card, private parking ticket or an old mobile contract for example) the chances are, this is where it was processed. All you need to do now is to call the court in question and provide them with the reference number, and they will provide you with the claimant details so you can deal with it in whichever manner is appropriate for your situation. Quite a lengthy process for something that should be so simple yes?

The Registry Trust, who operates Trust Online, has been campaigning for quite some time to have claimant data included on the register. This has a number of benefits which are listed in a rather interesting blog by Mick McAteer, Chair at Registry Trust. As yet there is no further update on this but we would hope something can be done sooner rather than later. A link to the article can be found here

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Over one million energy vouchers unclaimed in December https://www.debtadvicefoundation.org/news/2023/01/03/over-one-million-energy-vouchers-unclaimed-in-december/ Tue, 03 Jan 2023 14:43:08 +0000 https://www.debtadvicefoundation.org/?p=5730 It has been revealed that more than one million households with pre-payment meters didn’t redeem their monthly energy voucher in December. The government previously announced that the Energy Support Scheme would provide £400 to every household in Britain to help with rising energy costs. Whilst those that pay their energy bills by direct debt automatically […]

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It has been revealed that more than one million households with pre-payment meters didn’t redeem their monthly energy voucher in December.

The government previously announced that the Energy Support Scheme would provide £400 to every household in Britain to help with rising energy costs. Whilst those that pay their energy bills by direct debt automatically receive a monthly credit into their energy account, those with pre-payment meters are sent vouchers, which they then need to redeem at either the Post Office or a Paypoint network store.

Whilst recent postal strikes may have delayed some voucher deliveries, there is mounting criticism of the pre-payment voucher system and how some of the most vulnerable energy consumers with pre-payment meters face additional steps to access their support.

A government spokesperson said: “The UK government has stringent compliance and enforcement measures in place with all suppliers for the Energy Bills Support Scheme, and we require them to report to us on a monthly basis on their delivery.”

Anyone with a pre-payment meter that hasn’t yet received their voucher should contact their energy supplier and make sure their address details are up to date.

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Bailiffs to be legally required to wear body cams https://www.debtadvicefoundation.org/news/2022/12/16/bailiffs-to-be-forced-to-wear-body-cams/ https://www.debtadvicefoundation.org/news/2022/12/16/bailiffs-to-be-forced-to-wear-body-cams/#respond Fri, 16 Dec 2022 15:38:59 +0000 https://www.debtadvicefoundation.org/?p=5677 Deputy Prime Minister, Lord Chancellor and Secretary of State for Justice, Dominic Raab has announced bailiffs will have to wear body cameras in future in an effort to curb aggressive tactics from private enforcement agents. Although the majority of enforcement agents act in accordance with the relevant laws and regulations, there are often reports of […]

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Deputy Prime Minister, Lord Chancellor and Secretary of State for Justice, Dominic Raab has announced bailiffs will have to wear body cameras in future in an effort to curb aggressive tactics from private enforcement agents.

Although the majority of enforcement agents act in accordance with the relevant laws and regulations, there are often reports of bailiff activity falling below these standards. It is hoped that the new measures will help protect vulnerable people and support complaint investigations against these agents.

The government’s response follows a call for evidence which found concerns over inappropriate behaviour from some enforcement agents, a lack of effectiveness in complaint processes and a need for an independent oversight body.

Dominic Raab said “We’re determined to protect vulnerable households which includes ensuring they’re not harassed by rogue bailiffs. While the majority of bailiffs acting above board, body-worn cameras will make sure those who abuse their powers can be help to account.”

David Rodger, CEO of Debt Advice Foundation said “As a debt charity, we often hear reports of bailiffs intimidating, threatening and giving false information when it comes to their powers of enforcement. We’re hopeful that the new requirements will have a big impact on raising standards in the sector.”

The new measures will come into force when parliamentary time allows following a short consultation on the use of body cameras.

A review of the fees bailiffs can recover is also to be launched.

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Energy suppliers accused of failing vulnerable customers https://www.debtadvicefoundation.org/news/2022/12/07/energy-suppliers-accused-of-failing-vulnerable-customers/ Wed, 07 Dec 2022 13:38:32 +0000 https://www.debtadvicefoundation.org/?p=5648 As the fuel poverty crisis continues, energy suppliers are coming under fire for continuing to switch people to prepayment meters despite a letter from OFGEM last month reminding them of their obligations before doing this. OFGEM has identified significant failings within some companies where debt repayments are so high, that customers are having to self […]

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As the fuel poverty crisis continues, energy suppliers are coming under fire for continuing to switch people to prepayment meters despite a letter from OFGEM last month reminding them of their obligations before doing this. OFGEM has identified significant failings within some companies where debt repayments are so high, that customers are having to self disconnect. Self-disconnection occurs when prepayment meter customers go off supply because the credit on the meter has been exhausted. In some cases there have been reports some customers are not aware they have been switched to prepayment.

In order to be a domestic supplier, an energy company has certain licence conditions that they must meet. When it comes to dealing with arrears, a supplier must treat all customers fairly and they need to make extra effort to identify and respond to the needs of anyone in a vulnerable situation. This includes assessing someone’s affordability to repay arrears and setting up payment plans.

Where a customer has an old style meter, and has arrears, a supplier must go through the court process in order to fit a prepayment meter. If the customer has a smart meter, this can be done remotely and does not require the permission of the court. Prepayment meters should only be used where it is safe and reasonable to do so and should not be installed or remotely switched without carrying out appropriate assessments, including identifying any vulnerability.

Based on OFGEM data, utility switching company Uswitch is forecasting 10,000 households per month could be switched to prepayment meters if current trends continue.

In a review conducted by the regulator OFGEM, they ranked firms in three customer support categories:

  • Severe weaknesses: Good Energy, Outfox, So Energy, Tru Energy and Utilita
  • Moderate weaknesses: E (Gas & Electricity), Ecotricity, Green Energy UK, Octopus and Shell
  • Minor weaknesses: British Gas, Bulb, EDF, E.ON, Ovo, Scottish Power and Utility Warehouse

Ofgem Chief executive Jonathan Brearley said customers faced ‘pot luck’ when calling their provider for help.

Some suppliers have responded to the report by stating the level of support they provide has increased in recent months and it does not represent where they are as a business today.

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Statutory Debt Repayment Plan put on hold https://www.debtadvicefoundation.org/news/2022/12/01/statutory-debt-repayment-plan-put-on-hold/ Thu, 01 Dec 2022 14:45:18 +0000 https://www.debtadvicefoundation.org/?p=5646 The proposed Statutory Debt Repayment Plan (SDRP), which will allow someone with qualifying debt to enter a legally protected statutory agreement to repay their debts, has been put on hold until 2023. The delay has come in response to a stakeholder consultation with concerns being raised about a number of aspects of the instrument from […]

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The proposed Statutory Debt Repayment Plan (SDRP), which will allow someone with qualifying debt to enter a legally protected statutory agreement to repay their debts, has been put on hold until 2023.

The delay has come in response to a stakeholder consultation with concerns being raised about a number of aspects of the instrument from scheme design to flexibility and funding.

Details on the government response can be found here . The government has said it will await the Insolvency Service led review on the personal insolvency framework before deciding on the future of SDRP.

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Council Tax Rebate Scheme extended https://www.debtadvicefoundation.org/news/2022/11/15/council-tax-rebate-scheme-extended/ Tue, 15 Nov 2022 09:53:06 +0000 https://www.debtadvicefoundation.org/?p=5606 The deadline for the Council Tax Rebate Scheme has been extended until 30th November. Whilst most eligible people have received the rebate, there are still a relatively small number of households who have not yet claimed. The deadline of the 30th will not be extended. The rebate can be redeemed in a number of ways:- […]

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The deadline for the Council Tax Rebate Scheme has been extended until 30th November.

Whilst most eligible people have received the rebate, there are still a relatively small number of households who have not yet claimed. The deadline of the 30th will not be extended.

The rebate can be redeemed in a number of ways:-

  • Most council’s automatically paid those eligible directly to their bank account if they paid through direct debit
  • A form can be completed through the council’s website (if available) and the claim can be paid directly into a bank account.
  • The council can issue vouchers to be redeemed at a post office.
  • Some local authorities are also sending cheques to households that do not pay their council tax via direct debit.

Click here to check who your local council is and how to contact them.

If the claim is not done by the deadline, the council may apply the rebate to the council tax account of the eligible household.

For more information on the council tax rebate scheme, please check the Gov.Uk website.

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Statistics on insolvency’s July – September (Q3) https://www.debtadvicefoundation.org/news/2022/11/01/statistics-on-insolvencys-july-september-q3/ Tue, 01 Nov 2022 08:33:44 +0000 https://www.debtadvicefoundation.org/?p=5592 The insolvency service has released their quarterly statistics on individual insolvency for the period covering July to September (Q3). The stats show that although there has been an increase in the amount of individuals being declared bankrupt, up 66 from the previous quarter, IVA’s are still the most common form of insolvency with 20,635 in […]

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The insolvency service has released their quarterly statistics on individual insolvency for the period covering July to September (Q3).

The stats show that although there has been an increase in the amount of individuals being declared bankrupt, up 66 from the previous quarter, IVA’s are still the most common form of insolvency with 20,635 in the same period. This is down from 21,845 in Q2.

If we compare the same period last year, there has been an increase in the IVA market of 5% with DRO’s and bankruptcies falling 3% and 12% respectively.

The Insolvency Service also noted the amount of Breathing Space applications increased by 18% to 18,347 compared to Q3 2021. Breathing space applications have been steadily rising each quarter since its inception.

The statistics can be viewed here.

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