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FSA to regulate 'sale and rent back' companies
The Financial Services Authority (FSA) will implement interim regulations from 1 July 2009 to tackle problems related to 'sale and rent back' companies. This will enable homeowners who have suffered unfair losses of money on their homes as a result of rogue 'sale and rent back' companies to claim compensation from the FSA. 'Sale and rent back' companies target homeowners who are experiencing financial difficulties by offering to buy their homes and allow them to stay on as tenants. The decision to regulate such companies has come about as a result of an increasing number of complaints from customers who have been offered significantly reduced prices for their houses compared to the commercial value.
If you are struggling to keep up with your mortgage repayments you may be able to apply for one of the government's housing schemes that have been introduced to help homeowners. For more information on what is available, see the Housing and Repossession section on Credit Action’s website.
Here is a review of the other top money stories of the past week commencing 8 June 2009.
Tuesday 9th June
MPs call for crackdown on late taxpayers – MPs have criticised HM Revenue & Customs (HMRC) today for failing to control the increasingly large sum owed by businesses and individuals. A report from the Public Accounts Committee (PAC) has indicated that nearly one in three people pay taxes late. Almost £17bn was owed to HMRC in taxes, interest and fines at the end of March 2008, with £4.5bn outstanding for more than a year. The committee has criticised HMRC for failing to stay in control of its debts. With the government experiencing a 14% fall in income tax revenue as a result of the financial crisis during April alone, the government is expected to crackdown on businesses and individuals who pay their taxes late.
MPs call for crackdown on late taxpayers – MPs have criticised HM Revenue & Customs (HMRC) today for failing to control the increasingly large sum owed by businesses and individuals. A report from the Public Accounts Committee (PAC) has indicated that nearly one in three people pay taxes late. Almost £17bn was owed to HMRC in taxes, interest and fines at the end of March 2008, with £4.5bn outstanding for more than a year. The committee has criticised HMRC for failing to stay in control of its debts. With the government experiencing a 14% fall in income tax revenue as a result of the financial crisis during April alone, the government is expected to crackdown on businesses and individuals who pay their taxes late.
If you are struggling to keep up with your mortgage repayments you may be able to apply for one of the government's housing schemes that have been introduced to help homeowners. For more information on what is available, see the Housing and Repossession section on Credit Action’s website.
Here is a review of the other top money stories of the past week commencing 8 June 2009.
Tuesday 9th June
MPs call for crackdown on late taxpayers – MPs have criticised HM Revenue & Customs (HMRC) today for failing to control the increasingly large sum owed by businesses and individuals. A report from the Public Accounts Committee (PAC) has indicated that nearly one in three people pay taxes late. Almost £17bn was owed to HMRC in taxes, interest and fines at the end of March 2008, with £4.5bn outstanding for more than a year. The committee has criticised HMRC for failing to stay in control of its debts. With the government experiencing a 14% fall in income tax revenue as a result of the financial crisis during April alone, the government is expected to crackdown on businesses and individuals who pay their taxes late.
MPs call for crackdown on late taxpayers – MPs have criticised HM Revenue & Customs (HMRC) today for failing to control the increasingly large sum owed by businesses and individuals. A report from the Public Accounts Committee (PAC) has indicated that nearly one in three people pay taxes late. Almost £17bn was owed to HMRC in taxes, interest and fines at the end of March 2008, with £4.5bn outstanding for more than a year. The committee has criticised HMRC for failing to stay in control of its debts. With the government experiencing a 14% fall in income tax revenue as a result of the financial crisis during April alone, the government is expected to crackdown on businesses and individuals who pay their taxes late.
Wednesday 10th June
Citizens Advice sees dramatic increase in demand – The charity Citizens Advice has reported a dramatic increase in enquiries about redundancy and debt over the past three months. Enquiries about redundancy were up by 179% during the first quarter of 2009, compared to the same period last year. The charity also saw an increase of 49% in enquiries about mortgage and loan arrears and 24% more people asked about bankruptcy. Citizens Advice has indicated that its average client has debts of £16,971.
Citizens Advice sees dramatic increase in demand – The charity Citizens Advice has reported a dramatic increase in enquiries about redundancy and debt over the past three months. Enquiries about redundancy were up by 179% during the first quarter of 2009, compared to the same period last year. The charity also saw an increase of 49% in enquiries about mortgage and loan arrears and 24% more people asked about bankruptcy. Citizens Advice has indicated that its average client has debts of £16,971.
Thursday 11th June
The recession could be almost over – The National Institute of Economic and Social Research (NIESR) – a think tank - has estimated that the British economy grew by 0.1% during May, following 0.2% growth in April. The economic growth during April and May has been largely attributed to the encouraging figures seen across the industry and services sector. These encouraging figures coincided with the release of figures from the Office for National Statistics (ONS) which indicated that manufacturing output increased by 0.2% in March, marking the first consecutive rise in output since January and February last year. Many experts have warned that these figures, although encouraging, should not be taken as a signal of the end of the recession.
Big jump in mortgage lending during April – Mortgage lending increased by 16% during April compared to the previous month, according to the Council for Mortgage Lenders (CML). Despite these encouraging figures, lending still remains down by 28% from the same month last year.
The recession could be almost over – The National Institute of Economic and Social Research (NIESR) – a think tank - has estimated that the British economy grew by 0.1% during May, following 0.2% growth in April. The economic growth during April and May has been largely attributed to the encouraging figures seen across the industry and services sector. These encouraging figures coincided with the release of figures from the Office for National Statistics (ONS) which indicated that manufacturing output increased by 0.2% in March, marking the first consecutive rise in output since January and February last year. Many experts have warned that these figures, although encouraging, should not be taken as a signal of the end of the recession.
Big jump in mortgage lending during April – Mortgage lending increased by 16% during April compared to the previous month, according to the Council for Mortgage Lenders (CML). Despite these encouraging figures, lending still remains down by 28% from the same month last year.
Friday 12th June
Negative equity is linked to speeding up the recession – The Quarterly Bulletin from the Bank of England has revealed that around 7%-11% of UK homeowners with a mortgage were in negative equity in the first three months of this year, owing more to their lender than their home was worth. This works out to between 700,000 and 1.1 million householders in negative equity. The Bank of England also point out that this large amount of homeowners in negative equity might have increased the speed of the recession. As borrowers struggle to repay and banks experience losses on mortgages, this can make banks nervous and unwilling to lend. Although this level of negative equity is similar to that seen in the early 1990s, the amount of homes that have been repossessed is much lower than seen in the early 1990s.
Beware of ID fraud – Experian's Credit Expert Report has issued a warning for young and single renters to be extra vigilant against having their identity stolen. The report which was based on the analysis of 5,000 victims of ID theft, says that young professionals renting in Glasgow and London are most at risk of ID fraud, and as young professionals often live in houses with shared hallways and move house often, it can be a lot easier for thieves to access tenants' bank details and steal their identities. The report urges everyone, particularly young professionals who rent accommodation to be extra vigilant against becoming a victim of the identity thieves.
Negative equity is linked to speeding up the recession – The Quarterly Bulletin from the Bank of England has revealed that around 7%-11% of UK homeowners with a mortgage were in negative equity in the first three months of this year, owing more to their lender than their home was worth. This works out to between 700,000 and 1.1 million householders in negative equity. The Bank of England also point out that this large amount of homeowners in negative equity might have increased the speed of the recession. As borrowers struggle to repay and banks experience losses on mortgages, this can make banks nervous and unwilling to lend. Although this level of negative equity is similar to that seen in the early 1990s, the amount of homes that have been repossessed is much lower than seen in the early 1990s.
Beware of ID fraud – Experian's Credit Expert Report has issued a warning for young and single renters to be extra vigilant against having their identity stolen. The report which was based on the analysis of 5,000 victims of ID theft, says that young professionals renting in Glasgow and London are most at risk of ID fraud, and as young professionals often live in houses with shared hallways and move house often, it can be a lot easier for thieves to access tenants' bank details and steal their identities. The report urges everyone, particularly young professionals who rent accommodation to be extra vigilant against becoming a victim of the identity thieves.
