Tag Archives: debt news

The top 5 debt and money news stories for February 2017

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With gloomy January out of the way, we take a look at the latest personal debt statistics from the Bank of England, get the low-down on why so many banks are closing high street branches, and find out about the rising number of us applying for insolvency.

Not only that, we’ll explore research suggesting you could be saving on your ‘big shop’ and we look at how the Government is changing the benefits available to the bereaved…

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November’s debt and money news

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It’s time for debt news again! As usual, things have been happening. Money things. Debt things. Things for us to report to you.

What can be expected from this month’s round up? Payday loans are causing problems, married couples are missing out on tax allowances, and we’re getting a new pound coin.

That’s not all though. Voucher scams, benefits caps and a debt collection company writes off millions of pounds worth of debt. Well, I did say things had been happening! There’s a lot to catch up on, so you’d better read on…

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Debt collection company refunds & writes off £414m

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The Financial Conduct Authority (FCA) has announced that Motormile Finance, a debt purchasing and collections company, has agreed to write-off £414m of debt for over 500,000 of its customers for past failures in its collections process.

The redress will consist of £154,000 in cash payments to customers and the writing-off of £414m of debt where the firm’s been unable to provide evidence that the balance of a debt is correct and properly due to be repaid.

Bradford-based Motormile Finance are also known as MMF, MMF Debt Purchase and MMF UK.

What happened?

The FCA investigation found that the Motormile Finance had inadequate systems, and didn’t conduct the required checks when buying a portfolio of debts (commonly known as ‘debt books’) from creditors. This process, known as due diligence, meant that the firm couldn’t always be sure that the balance of some customers’ debts were correct.

Other poor practices were also found at the firm, and the company are reported to be making improvements to their processes to make sure this doesn’t happen again.

What’s Motormile Finance going to do about it?

Affected customers will receive either a cash refund, have their outstanding debt balances written off, or in some situations both. The redress will consist of £154,000 in cash payments to customers, and £414m will be used to write off debt balances.

The FCA have since authorised Motormile Finance to continue trading, after it was satisfied that the poor practices at the firm were historical, and major changes have since been made.

A spokesperson for the FCA said:

“We have agreed this package, and previous action, to protect the customers of Motormile from unfair practices. We have worked closely with Motormile, and are now satisfied with their progress and the way that they will address their previous mistakes.”

I’m a Motormile customer, what should I do?

If you’re affected, you don’t need to take any action. Motormile Finance will contact you to explain how the refund will be dealt with. They’ll be in touch by February 2017 at the latest.

There’s more information for customers who think they’re affected on the Motormile website.

I’m a StepChange Debt Charity client – what do I need to do?

If you’re on a debt solution with us and you’re told you’ll receive money or have your balance reduced or written off, you should get in touch with us to let us know. We’ll see if this affects your solution, and let you know if you need to do anything.

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Debt and money news – September 2016

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This month saw the introduction of a new plastic £5 note, changes to TV licensing laws and a payday lender ordered to refund £34m back to thousands of its customers.

Grab yourself a brew, sit back and find out the latest news from the world of debt! Continue reading »

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Payday lender refunds & writes off £34m

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This week the Financial Conduct Authority (FCA) announced that the payday lender CFO Lending has been ordered to pay a £34m ‘redress’ package to 97,000 of its customers.

The announcement came after the FCA found a number of poor practices at the firm, dating back to 2009, that had caused detriment for many of their customers.

CFO Lending were also known as as Flexible First, Payday First, Money Resolve, Paycfo, Payday Advance and Payday Credit. Continue reading »

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Debt and money news – August 2016

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August is often referred to as the ’silly season’ for news stories, where the papers are full of whimsical stories.

That hasn’t stopped this month also being jam-packed full of goings-on in the world of debt and money news. Continue reading »

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June’s money and debt news

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Unexpected bills, payday loan complaints and debates over credit card limit increases were all hot topics in money and debt related news this month. 

In brighter news, for those hoping to get on the property ladder, chartered surveyors predict that house prices may fall over the next three months – the first fall in six years. And the final design for the new £5 note has also been revealed, and tests show that these new notes can withstand the washing machine much better than their predecessors!

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