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Debt Collection News Roundup – October, 2018

Here at Access Credit Management we make sure we’re keeping up to date with what’s going on in the national and international debt collection industry.  We aim to bring our readers interesting and relevant news about the sector so once a month we publish a News Roundup.  This should keep you up to speed with all the important happenings in the industry and provide you with a valuable resource that that you can use to stay fully informed of all the latest news.  It would be interesting to know what you, the readers, think of the stories that feature here.  Please join in by adding your comments on our Facebook page, tweeting on Twitter or email us if you come across anything that you think we should include.

Our first item is great news for people with problem debt.  The government has announced its plan to launch a no-interest loan scheme for people on low incomes in a bid to stop them from relying on payday loans.  According to Chancellor Philip Hammond who unveiled his money plan for the coming year, the scheme may offer an affordable alternative to more than three million high-cost credit users to stop them from turning to loan sharks.  A similar scheme in Australia has helped four out of five people to stop using payday loans.  Don’t hold your breath on this one – the government will collaborate with the banking industries and leading debt charities to undertake a feasibility study next year to ascertain how a pilot scheme of this type would work in the UK.

One lady managed to suss the debt problem for herself, paying off $70,000 in three years.  She did this by asking herself a simple question – “What’s motivating me?”  Adeola Omole used her experience to write a book on conquering debt and we’ll have more detailed information on this next week, so make sure you check back to see how you too could make debt a thing of the past.

A new statistical report released by the Student Awards Agency Scotland has revealed that students from the poorest backgrounds bear the brunt of the debt burden.  The poorest students take out the largest loans, with an average of £5,780 per year for the lowest household income brackets.  For a student on a four year degree course, this adds up to a total debt of £23,120 as they begin their working lives.

The Chartered Institute for Public Finance and Accountancy (CIPFA) suggests that local authorities are “investing in commercial properties disproportionately to their resources”.  CIPFA plans to work on fresh guidance as this practice is against the requirements of CIPFA’s Prudential Code and Treasury Management Code.  CIPFA believes that there has been an increase in the practice of borrowing to invest in commercial property and is against CIPFA’s requirements of fiscal sustainability, prudence and affordability.  The government’s Statutory Guidance on Local Government Investments is clear that local authorities should not borrow more than, or in advance of their needs purely to profit from the investment of the extra sums borrowed.