The Lending News Bulletin: 1-16 November

Our regular digest of the most salient news and opinion on consumer credit, lending and regulation

Mortgage arrears remain at historic lows in Q3 2018 | UK Finance | 08.11.18

Figures from UK Finance, the trade association representing the finance and banking industry, report that mortgage borrowers are paying their mortgages on time and in full, and that repossessions and arrears are historically low. 19% fewer homeowner-mortgaged properties were taken into possession in Q3 of 2018, than in the Q3 of 2017. The only subset of the data which saw an increase in the same quarter as last year was the number of buy-to-let mortgages with 10% or more of the outstanding balance in arrears. This had increased by 3%.
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The Big Tech Competition Dilemma | FCA |01.11.18

Robin Finer, the FCA’s Acting Chief Economist and Director of Competition, states that technology, the speed its adoption and how it disrupts existing markets can create important competition and regulatory issues. Finer states that businesses have an increasing reliance on the use of consumer data, and where one company’s ability to extract and then refine data exceeds the ability of others, it can create an unfair competitive advantage. This is especially prominent in the world of Big Tech. He states that those in competition policy making need to adapt their traditional analysis to include different indicators and metrics in order to keep up with the pace of change in the technology sector.
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FCA outlines levy plans for new govt guidance body |Money Marketing | 15.11.18

Debt advice and pensions guidance is paid for through FCA regulated firms, and will continue to do so albeit it will be now administered through a single public guidance body – the Single Financial Guidance Body (SFGB). It will perform the functions of the Money Advice Service, Pension Wise and The Pensions Advisory Service. Split levies will be managed by devolved authorities in Scotland, Wales and Ireland.
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Consumer finance new business falls by 1% in September | Finance & Leasing Association |08.11.18

The Finance and Leasing Association – the trade body for asset, consumer and motor finance sectors – released consumer finance figures from last month, September. It reports that consumer finance fell by 1% in September compared to the same period last year. New business for credit card and personal loans increase by 4% compared to September 2017. It also report that in the third quarter of this year, new business grew by 5% compared to Q3 last year.
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Monthly PPI refunds and compensation |FCA |16.11.18

The FCA released figures on monthly refunds on payment protection insurance (PPI). The amount paid back since January 2011 is £32.9bn. A total of £309m was paid in September 2018 to customers who complained. We have plotted these in a chart for analysis.
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