Debt

  • 15/05/2012

    Poorest households ‘borrowed to spend’ prior to crisis

    A think-tank report has said that for more than a decade before the global financial crisis households on low-to-middle incomes relied on borrowing to fund much of their spending.

    The report says that, over the 10-year period of 1997–2007, spending grew faster than incomes across all households, but for the poorest groups this phenomenon was much more pronounced.

    Subjects: Low-income households, Debt, Housing
    Category: Reports
  • 10/05/2012

    Credit union expansion

    An official study has suggested ways in which the credit union sector could expand and modernise. It says credit unions need to show a commitment to change, work more closely together and make greater use of technology.

    The feasibility study for the Department for Work and Pensions says this would provide a strong foundation for the sector to provide new services such as ‘jam jar’ accounts and online banking, as well as improve loans decisions. It would also create the potential for a link with the Post Office. The report also raises the possibility of increasing the amount of interest credit unions could charge on loans in order to make them more financially secure.

    Source: Colin Purtill, John Cray and Cath Mitchell, DWP Credit Union Expansion Project: Feasibility Study Report, Department for Work and Pensions

    Link: Report

    Subjects: Debt
    Category: Reports
  • 07/03/2012

    Payday loan system needs reform

    A report by the Debt Management, Business, Innovation and Skills Committee of the House of Commons criticises the payday loans industry and calls for a number of reforms:

    The government must act to limit the rolling over of payday loans and the switching between payday loans and the subsequent rolling over of loans. The government should ensure payday providers record all of their transactions on a database. The government must make clear that unless payday loan companies demonstrate a commitment to moving away from the continuous payment authority as the method for receiving payments, the new regulator will be asked to address this as a priority.
    Subjects: Debt
    Category: Reports

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