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Monthy Debt News (June 2023)

 Monthly Debt News looks at debts and the causes of debts in Britain from various sources selected for professionals to make the debt sector simple.

This month’s Debt News includes: FCA ban debt referral fee  -  students sell sex to pay for Uni - man fined for smashing a debt collector - UK household highest debt ever - 'imprisoned mortgagees' as high interest increase - benefit debt increase foodbank use and finally - bite-size stats.


FCA set out our new rules banning debt packagers from receiving referral fees 

FCA are banning debt packager firms from receiving remuneration from debt solution providers. This will remove a strong incentive for debt packagers to offer advice which does not have regard to the best interests of the customer...

More here: Link (FCA)


One in 20 students sell their bodies for sex to pay for university, according to survey

Students are selling their bodies for sex in order to slash their debt and pay for their cost of living, a major new study claims. According to research done by Swansea University, a staggering 1 in 20 students had worked in the sex industry while studying for a degree.

More here:   Link (Daily Mirror)


Man sentenced for smashing up Debt Collector’s van

A man who smashed up a debt collector’s van and threatened staff when they came to his property has been given a community order. Stuart O’Connor, 42 and of Oswestry, pleaded guilty to two offences of criminal damage under £5,000 and using threatening/abusive words and behaviour...

More here: Link (UKC News)


UK household debt swells past £2 trillion for first time ever

Family debt has swelled past £2 trillion for the first time ever in a sign Brits are whipping out their credit cards to fund spending amid the cost of living crunch, new research out today reveals. 

More here: Link (City AM)


Serious risk' borrowers will become 'mortgage prisoners' as monthly payments cost more than half of people's income

We've spoken a lot about mortgages this week, and sadly it doesn't seem the situation around rates is going to get better anytime soon.  More than 367,000 mortgages are expected to come to an end of their five-year fixed rate deals in the next 12 months, according to Equifax's chief data and analytics officer...

More here: Link (Sky)


Cost of living: Benefit debt pushing people into ‘crisis’ as they struggle to afford food, government warned

Ministers have been urged to reform benefit debt rules over concerns almost half of households owing money to the Government...

More here: Link (iNews)


Bite Size stats:

Summary motoring offences accounted for 73% of all fines. There were 1.05 million offenders sentenced in 2022, a 9% rise from the 962,000 seen in the previous year – this is driven by a 13% increase in fines... (Ministry of Justice)


Compared to the same quarter in 2022, mortgage possession claims increased from 2,889 to 4,035 (40%), orders from 2,288 to 2,540 (11%), warrants from 2,184 to 2,624 (20%) and repossessions by county court bailiffs increased from 579 to 718 (24%) (Ministry of Justice)


February 2023, 6.18% of UC full service claimants subject to sanction as part of their conditionality regime. Prior to legislation changes made on 30 March 2020, the UC sanction rate was 2.51% (DWP)


Last year, there was at least a 28% increase in the number of food parcels distributed by the food banks in our network in every region of the UK (Trussell Trust)



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