Talking about debt is more important than ever before, especially in times of the cost of living crisis. There are also regulatory changes in the debt sector. Debt Talk podcast series here to explore the views of a diverse range of communities in the debt sector - from debt collections, enforcement agents, and alternative lenders to debt advice charities - and understand the support needs of debtors in such a challenging ti ...
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One of the important changes in the last decade is the rise in the consumption of products and services on Buy Now Pay Later, as many low-income households are using these products to buy household items. In this month’s Debt Talk podcast, Ripon Ray discusses ‘Indebted with Buy Now Pay products’. To address this pressing subject, Sean Breen from the Consumer Council for Northern Ireland and Gulsah T from Bromley Citizens Advice highlight some of the issues faced by communities struggling with buy-now-pay-later products and services. Sean Breen, Director of Financial and Postal Service from the Consumer Council for Northern Ireland, explains that, based on their research, most consumers are from low-income households. They are already struggling with their finances and must be made aware of the consequences of non-payment, such as not being covered by the Financial Ombudsman Compensation Scheme. Many of them are also prone to being attracted to illegal money lenders. Gulsah T, Head of Advice Services, at Bromley Citizens Advice, highlights the changes in the types of clients they see. Where among many debts, they have seen an increase in young people purchasing buy now pay later and how education is crucial in highlighting the cost of default in payment of buy now pay later can be to the individual credit rating and a claim in court since the Financial Conduct Authority does not regulate them. The next podcast is on ‘Pensioners & winter fuel payment’.
Thousands of unpaid carers have been fined due to falling foul of earnings rules in the UK. Some of them also faced prosecution. The Department of Work and Pension (DWP) is recovering the overpayment of carers’ allowance from their existing benefit or salaries. On this month’s Debt Talk podcast, Ripon Ray explored: ‘Carers & benefit overpayment’ with distinguished guests from a funder and civil society organisations. Rory Ewan, Senior Analyst from Policy in Practice, spoke about financial and non-financial challenges carers face in the UK. He explained the nature of carers’ role and how they have fallen foul of the criteria for carers allowance. He also describes how income received under carers allowance is different from universal credit. Universal credit has a taper system where carers lose the whole of their allowance if they earn a pound above the legal threshold. The DWP then use drastic enforcement action to recover the debt which leaves carers in further poverty and with some faced with criminal prosecution. Abby Jitendra, Senior Policy Adviser from the Joseph Rowntree Foundation (JRF) explained the UK's carers' state. They are mostly women, low-paid and deemed to fall within the vulnerability category. JRF carried out several research into the causes of poverty and carers and they are financially penalised for caring and also marginalised from the labour market leaving them with insecurity. Abby also highlighted the importance of changes in the benefits system to support carers in the long term. Both panel members provided Debt Talk listeners with TOP TIPS to consider policy change to improve the lives of carers in the UK. My next podcast is on: 'Indebted with By Now Pay Later products.’
Labour's landslide victory in the General Election raises questions about what the policy development will be for leaseholders' benefit in the United Kingdom. In this month’s Debt Talk podcast with Ripon Ray, three distinguished individuals share their knowledge on another important subject, ‘Leasehold & charges’. Suz Muna from the Social Housing Action Campaign says that renting and leasehold are two sides of the same coin where leaseholders are very much trapped in an exploitative situation from developers, freeholders, and management companies. Many of the leaseholders are living in unsalable homes whilst service charges are rocketing up. She argues for the abolition of leaseholds. Nicolas Kissen, senior adviser and a solicitor at the Leasehold Advisory Service, explained the rights leaseholders may have against stakeholders when there are high charges, bad behaviour and cladding in properties. Matthew Connell, Director of Policy and Public Affairs for the Personal Finance Society emphasised exploring different insurance and service products for leaseholders and explaining free money advice when leaseholders need support. They also provided TOP TIPS to the new Labour government to make policy changes to improve the conditions for leaseholders who are struggling with service charges. The next podcast on Debt Talk is on: 'Carers & benefit Overpayment'. If you want to get involved, get in touch with Ripon Ray - ripon.ray@yourdoctordebt.com
Thames Water considered a rise of 40% whilst its parent company is on the verge of liquidation. Southern Water requested Ofwat last October to increase its bill to consumers by 66% on top of the rise in inflation. In this month's Debt Talk podcast, Ripon Ray explored 'UK waters & our bills’. Eugenio Vaccari - Senior Lecturer from Royal Holloway, London, who researches sustainable restructuring procedures, explored the legal framework in which Thames Water and its parent company work and the potential challenges faced from the perspective of shareholders, government and sustainability of the water companies for the public interest. Andrew White - Senior leader for Social Policy of the Council for Consumer Water which represents the interest of consumers in the water sector explained the the impact of the rise in cost for vulnerable communities and explained that there is a genuine need to have a social tariff to support struggling consumers. He also explained how important it is to collaborate to raise awareness of the cost of water while there are families with deficit budgets. My panel members have also provided TOPS TIPS to listeners to drive changes as the general election looks in the UK. My next podcast is on: ‘Leasehold & Charges.’
Another thought-provoking podcast on Debt Talk is ‘Poverty & ethnicity premium’. This time, leading experts from academia, think tanks, debt advice, and funders spoke about issues that matter in financial services. Maria Booker from Fair By Design explained the poverty premium and how communities are paying more and being financially discriminated against because many can’t afford to pay by direct debit and are also on low incomes. This is particularly the case with paying for insurance and fuel or customers who pay a fee for withdrawing cash from a cashpoint when they have no alternative option. Sara Davies from Bristol University explored how many customers are directly impacted by services in the retail finance sector based on her research on those digitally excluded or affected by disability. However, when one product has been regulated, others seem to come into the market to exploit vulnerable customers. Jerry, during MBE from Money A&E, passionately spoke about how direct and indirect discrimination exists when the system disadvantages minority communities. He emphasised that Muslim South Asian communities may find that financial products are not Sharia compliant and the Afro-Carribean community may end up paying more towards mortgages compared to their white counterparts. He argued for representing such communities in product development processes to drive change. Ayesha Begum from Fair4All Finance, which published ‘Levelling the playing field—Building inclusive access to financial services for people from minority ethnic groups’, explained that minority communities face multiple barriers and exclusion in financial services while also experiencing frequent financial shocks compared to their white counterparts. When mainstream lenders do not support some minority communities, they turn to their community or fintech companies due to a lack of trust from mainstream lenders. My guests also provided TOP TIPS to listeners of Debt Talk for regulators, policymakers, customers and businesses. The following podcast will be on ‘UK Waters & Our Bills.’ Thank you for listening to the Debt Talk podcast with your host, Ripon Ray.