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The Independent
2 days ago
- Business
- The Independent
Struggling mortgage holders warned fake loophole claims could worsen problems
Mortgage holders who are struggling with their payments are being warned they could make problems worse by acting on fake claims about legal loopholes and conspiracy theories claiming they cannot be held liable for their debts. The Financial Conduct Authority (FCA) said that people in financial difficulty and at risk of losing their home should beware of misleading claims that they are not legally bound by their mortgage contract. It urged struggling borrowers to instead speak to their lender, who could offer various options to support them. The FCA has updated its consumer web pages to warn people about false and harmful information. The regulator said it is aware of mortgage holders in financial difficulty being misled by online misinformation, often with serious financial consequences. Claims may use arguments dating back to the Magna Carta and people may also attempt to apply them to other types of debt or taxes. In a bid to stop their home being repossessed, mortgage holders may end up paying others a fee to take their claims to court. But, as well as being unsuccessful due to claims not being legally valid, people could also risk losing a big chunk of the equity they had in their home (the difference between the outstanding mortgage balance and the value of the property), the FCA said. This is due to increased costs related to repossession, legal fees and the impact these activities can have on the value of their homes. Even if someone cannot afford to stay in their home, their lender may be able to help them sell. This would at least mean that money left over from the sale is not spent on legal fees or other arrears and repossession costs. Greg Sachrajda, head of department in retail banking market interventions at the FCA, told the PA news agency: 'There is a risk that people who are in financial difficulty, and at risk of risking losing their home, are particularly susceptible to arguments that make things sound better.' He said: 'If something seems too good to be true, it usually is.' He continued: 'If you borrow money, you're required to repay it, and you only make the situation worse by trying to rely on false arguments which the courts are rejecting. 'We know people are desperate and can be struggling with their mortgage, and they may feel that things can't get any worse. But the reality is that unfortunately they can get worse. 'We've seen examples of people not only losing their home but also then getting less back from the proceeds of the sale of the home.' He said that is because lenders are incurring additional costs, which are then passed on to the consumer. Mr Sachrajda said that 'real help is available', adding: 'Our message to consumers is: 'Don't fall for these false, misleading arguments but instead speak to your lender who can help with real options to make things better.'' He said that lenders are required to treat borrowers who are in financial difficulty sensitively and fairly. Some options can prevent people from losing their home, by extending the term of the loan or temporarily switching to an interest-only mortgage, or agreeing a payment holiday, for example. In some situations, selling the property may be the appropriate next step, he said, adding: 'But even then they can help, because many lenders offer what we call an 'assisted voluntary sale' and that essentially gives the borrower more time to sell the property and the lender can help with both the costs of that process and also how to navigate the sales process to make that easier. 'And that can then help maximise the amount of money the customer makes from the sale.' As well as contacting their lender, people could also consider contacting a trusted service that can provide free help, Mr Sachrajda suggested. Organisations providing free support include the National Debtline (run by the Money Advice Trust), StepChange, Citizens Advice and the Government-backed MoneyHelper service. A spokesperson for banking and finance industry body UK Finance said: 'Struggling with mortgage payments can become overwhelming, however it's important to beware of advice circulating online which could put your home and finances at serious risk. 'It's always worth seeking independent legal advice before acting on information you find online, as understanding your legal position fully will help protect you from costly mistakes. 'If you're struggling with mortgage payments it's important to speak to your lender as early as possible, as they'll be able to offer a range of tailored options to help you. Lenders have dedicated teams who can work with you to find a way forward – whether that's adjusting repayment plans or exploring alternative solutions.'
Gulf Today
2 days ago
- Business
- Gulf Today
Over 13m people in UK face ‘tough' financial problems
The concerning lack of ability for some people to cope with unexpected costs has been revealed as new data showed one in ten (10 per cent) of UK adults have no cash savings whatsoever, leaving them vulnerable when faced with increased bills. More than 13m people across the nation are thought to be facing tough conditions financially, including amassing debt, have little savings or have missed paying bills. While the headline figure of ten per cent having no savings at all is a worry, findings from the Financial Conduct Authority (FCA) actually show a far greater scale of people who have minimal ability to manage any sort of shock to their income, with a further 21 per cent having less than £1,000 saved. Most financial experts agree that individuals or families should aim to build an emergency savings buffer of three to six months' worth of essential expenses, depending on circumstances, according to the Independent. This can aid to continue paying bills and essential costs like groceries, rent or mortgage repayments in the event of sudden pressures, like health emergencies, loss of work or even surging inflation. In addition to not having enough savings, the FCA data underlined two further issues: 2.8m people who have persistent debt through credit cards, which can be one of the most expensive ways to hold debt, along with a continuing rise in people using buy now, pay later (BNPL) services. More than a third of women (35 per cent) aged 25-34 use these services and a full 40 per cent of single parents do so. While some of these services do not necessarily always charge interest initially – some do of course – missing payments can be extremely costly and building up bigger repayment costs can potentially push greater debt on peoples' future. StepChange, a charity which helps with free advice to people struggling with debt, said in a statement they 'want to see the Government invest in safe options for those who can't afford to save to cope with unexpected costs, including a permanent national crisis support scheme, building on the Household Support Fund and a national no-interest loan scheme, and by working with the financial services industry to expand affordable, low-cost credit.' The FCA also shared encouraging data from those who do seek help. From 1.7m people using debt advice or services in the past year, 61 per cent 'said their debts were more manageable' in the aftermath. Compare the Market data shows more than half (52 per cent) of Gen Z – aged 16 to 28 – do not have a 'rainy day fund' for emergency expenses, while more than a quarter (27 per cent) of all people who do have one have needed to use it recently to cover increased household bills and other essential expenses. Research by wealth managers St. James's Place shows more than a quarter of the nation feeling anxious about the year ahead in monetary terms. Alexandra Loydon, director of advice, said: 'Economic challenges remain, so it's more important than ever to take steps to make your money work harder. While building a financial plan may seem daunting, especially if you've never done one before, this really shouldn't put you off., the Independent report adds. 'Identifying your key financial goals and assessing your current financial situation are the simple places to start. From there you should focus on building your emergency fund by putting aside a small amount of money each month and ensuring you're getting the best rates of return. 'While these may seem like small steps, they all help you grasp your financial situation and take action to improve it, making a real difference to your financial resilience both now and in future.'
Scotsman
3 days ago
- Automotive
- Scotsman
‘Simple PCP claims' launches to help UK drivers seek refunds over mis-sold car finance
A new consumer-focused claims management website, Simple PCP Claims, has officially launched to support UK drivers who may have been affected by the growing PCP (Personal Contract Purchase) finance mis-selling scandal. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The platform is designed to help users check if they're eligible for compensation, gather supporting documents, and submit claims – all in a clear, guided format. The business, Simple PCP Claims, is an independent claims management organisation founded in 2025 and led by Edinburgh-based entrepreneur Thomas Riley, a graduate of Heriot-Watt University. Simple PCP Claims was developed in direct response to ongoing investigations by the Financial Conduct Authority (FCA) into widespread concerns that major car finance providers may have failed to disclose commission structures that incentivised higher interest rates. The platform aims to improve access to justice for drivers who unknowingly overpaid as a result. Advertisement Hide Ad Advertisement Hide Ad 'Many people simply don't realise they've been affected,' said Thomas Riley, founder of Simple PCP Claims. 'Our mission is to demystify the claims process and provide a simple, secure way for users to explore their rights and claim back what they may be owed.' Thomas Riley business owner. The website ( includes: A fast and easy claims checker Step-by-step guidance on gathering evidence Educational content to explain what PCP mis-selling is Secure online submission of claim information
Yahoo
3 days ago
- Business
- Yahoo
Starling's profits dip 25% as bank takes blame for Covid loan losses
Digital bank Starling has suffered a 25% drop in annual profits and announced it would turn down government guarantees on £28m of Covid loans losses after conceding its own weak controls were to blame. The admission stirs up a long-running controversy over Starling's handling of the government-backed bounce back loan (BBL) scheme, which was built to get money quickly to small businesses during lockdown. The scheme offered loans of up to £50,000 at 2.5% interest but carried little risk, with taxpayers picking up 100% of losses if the companies defaulted. On Wednesday, Starling's chief executive, Raman Bhatia, said the bank had proactively reviewed some of the BBLs on its books, and conceded that a tranche of loans had been granted to applicants without proper checks. That meant they were unlikely to qualify for government guarantees, which might have otherwise seen taxpayers foot the £28m bill. 'In some cases, we think we may not have met all the procedures, all the requirements, of the scheme,' Bhatia told journalists during the conference call. He did not confirm whether Starling had discovered fraud or financial crime within that tranche of loans. It comes just months after Starling was hit with a separate £29m fine for 'shockingly lax' financial crime controls, which the City regulator said had left the financial system 'wide open to criminals and those subject to sanctions'. Together, the fine and BBL loss reduced Starling's profit for the year to March to £223m, down 25% from £301m a year earlier. Bhatia said the bank may consider cutting or clawing back pay from executives if appropriate. 'We have discharged our duties to consider any impact on [remuneration] where appropriate. I can't share any further details.' It is not clear whether that might impact Starling's founder and former chief executive, Anne Boden, who stepped down in 2023 citing a 'conflict of interest' between being a boss and a large shareholder in the lender. Starling's distribution of Covid loans gained heightened attention in 2022 when former minister Theodore Agnew accused Starling of using the BBL scheme as a 'cost-free marketing exercise to build their loan book and so their company valuation', and failing to properly review borrowers before handing out taxpayer-backed loans. Boden at the time vehemently denied Agnew's claims. Unlike large lenders, Starling opened BBL applications to new clients and saw its client base swell as a result. Its business customer base grew from 87,000 to 330,000: equivalent to adding 15,000 a month. And while the bank had only issued £23m of its own loans before the pandemic in November 2019, it had distributed £1.6bn in BBLs by the time the scheme closed in March 2021. Commenting on the Financial Conduct Authority (FCA) fine and the BBL loss on Wednesday, Starling's chief financial officer, Declan Ferguson, said: 'We continue to make significant investment into our financial crime resource to ensure our risk management and compliance capabilities are commensurate with the high-growth business and experience. 'Working closely with both the FCA and the British business bank, we have also sought to limit the impact of these issues and ensure they remain one-offs, but now we are now more confident we are moving forward into the next stage of our growth on much stronger foundations.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
4 days ago
- Business
- The Independent
Shein seeks Hong Kong stock market listing in blow to London
Shein is seeking to list on the Hong Kong stock exchange and turn its back on a planned listing in London, according to reports. The fast-fashion firm has been looking to float on the London Stock Exchange for the past year but has struggled to get the go-ahead from Chinese regulators for the move. The company, which was founded in China but is based in Singapore, is planning to file draft papers with Hong Kong's stock exchange in the coming weeks, according to Reuters. Sources said the business intends to go public in the Asian financial hub within the year, the reports said. Shein has been contacted for comment. Shein's expected London listing was due to be a major boon for the City's beleaguered equity markets. The company had reportedly secured approval for the listing from the Financial Conduct Authority (FCA) in March. However, it has not yet received approval for the IPO (initial public offering) from Chinese regulators, including the China Securities Regulatory Commission (CSRC). The potential change in plans come amid a backdrop of uncertainty for the retailer, which will be heavily impacted by changes to US tax rules. The US Government said last month that it will close a loophole that allows overseas sellers to import parcels of goods worth less than 800 dollars (£592.80) directly without paying tax. In the UK, the Government has also said it will review its own similar rule which allows small parcels, worth less than £135, to enter the country without paying duties. Shein, and rivals including Temu, are reportedly significant beneficiaries of current rules and are facing major tax increases as a result.
