In the middle of June England kicked off their World Cup campaign in Brazil. A week later they were on the plane back home.
If you were too busy putting up and taking down St George’s flags to catch the news, here are all the top debt stories you may have missed.
Wonga got it Wronga
Wonga have been forced to pay £2.6m in compensation to 45,000 customers after sending debt collection letters from fake law firms. The Financial Conduct Authority (FCA) investigated and found that between 2008 and 2010 the UK’s largest payday lender used the tactic to pile the pressure on customers to pay.
As it happened before the FCA took over regulating lenders, Wonga can’t be fined but affected customers will receive around £50 each as an apology.
If you want to find out more, or you’re a client of ours, read how Wonga compensation can affect your debt solution.
Grassroots get the chop
It seems that a lot of debt management companies have been going into administration, and this month the FCA has told Debt & Claims Ltd (also trading as Grassroots Financial or GFR) to cease trading.
It isn’t known if Grassroots will start trading again in the near future. What we do know is that they’ve been told to refund any money they were holding, the website is down and their clients are being contacted by another company.
Has your DMP company closed down? Find out what to do next.
HMRC force millions to repay tax
Nearly six million people in the UK will be told by the HM Revenue and Customs to repay underpaid tax. It’s not small potatoes either; tax officials estimate that around 1.4million people owe an average of £1,500 each.
If HMRC have contacted you and you’re struggling to pay, we can help with tax credit overpayment debts.
Don’t get duped by ‘risk-free’ online offers
Online shoppers are being warned not sign up for costly ‘risk-free’ offers. So called “100% satisfaction guaranteed” or “free trial” offers usually require a continuous payment authority (CPA) to be set up. A CPA allows a company to take recurring payments direct from a credit or debit card.
Many offers claim to send ‘risk-free’ product trials with a charge for postage & packaging, but often they’re a commitment to an on-going supply of products.
CPA payments are most commonly used to for payday loan payments. Remember it’s possible to cancel a CPA with your bank.
Thousands of uni students turning to payday loans
Last year up to 46,000 undergraduates borrowed money from payday lenders. To qualify for a payday loan a person should be in regular employment. However despite this, 2% of students surveyed said they used the loans to pay for university life.
The NUS warned that there was a perception that there was “no other option” and the “worrying” results highlighted a cost of living crisis.
The Ghananian Job
Finally, we’ve got one of the more unusual stories from this summer’s World Cup. The Ghanaian national side apparently ‘insisted’ that their $3m appearance fee be driven to them in a cash truck convoy. It made it to them safe and sound so I assume Michael Caine wasn’t involved.
That’s it for now; we’ll be back next month to bring you the best debt news stories from around the web.