Latest news with #financialdistress
Daily Mail
2 days ago
- Business
- Daily Mail
Animal shelters across US seeing rise in 'owner surrenders'
Another troubling sign of economic strain: more Americans are giving up their pets. Animal shelters across the US are seeing a rise in 'owner surrenders,' as families hand over dogs and cats they can no longer afford to keep. Volunteers say it's often an early warning sign of deeper financial distress. 'There are times when the economy has taken a dip or we've had a lot of job layoffs,' Melissa Knicely, a staffer at North Carolina shelter, told CNN . When that happens, '100 percent' there will be a jump in pets given up. Knicely's shelter has seen a 43 percent spike in surrenders this year — with most families saying they simply couldn't afford to keep their pets. They're not alone. Several rescues across the country have reported similar issues. Risa Weinstock, president of the Animal Care Centers of New York City, said her organization has stopped accepting new animals because they're over capacity. 'We're in the business to care for animals that come to us, and we want to help people with their pets,' she told NBC News . 'But when we have 1,000 animals to care for and a capacity to house them that doesn't meet that need, we're in a bit of a difficult situation.' Dog and cat ownership has become significantly more expensive in recent years, with the price of food and veterinary care climbing steeply. Porter County Animal Shelter, an adoption center in Indiana, estimates that dog owners spend between $20 and $60 a month on food alone. Annual costs — including beds, collars, medical treatments, grooming, and other basics — can total any additional $925 to $2,900, depending on the dog's breed and size, they estimate. The increasing pet prices are also coming while Americans continue to struggle with their own day-to-day bills. Food prices have soared since 2020 as restaurants, grocery stores, and suppliers scrambled to rebuild supply chains after pandemic shutdowns. Now, with tariff campaigns, heightened interest rates , growing geopolitical uncertainty, and new price rises, consumers are starting to feel their wallets getting stretched further. Last month, the Labor Department said that prices rose 2.7 percent — the largest increase since February — breaking a months-long streak of slowing inflation. And Americans are increasingly taking out consumer debt to pay for those higher prices. Still, a majority of economic indicators point to a robust economy. Unemployment claims fell again last week, and the latest jobs report showed that Americans are working and earning more than before. Those figures have helped reassure Wall Street investors, who continue to pour money into the economy on hopes that US consumers will keep spending. But for many households, the gap between those promising macroeconomic signals and the realities of rising costs feels impossible to ignore.
Bloomberg
2 days ago
- Business
- Bloomberg
The Texas Economy Ain't All That
Texas has the world's 8th largest economy, with its sights on No. 7 France, and has been a model of strength and resilience for decades. Since the pandemic, it has had higher GDP growth and a lower unemployment rate than most states. It is also, according to the personal-finance website WalletHub, the state with ' the most people in financial distress.' This top ranking came as a surprise to a lot of people — but not to me, a Texas native and resident. For all the impressive statistics, Texas doesn't generate sufficient income or economic security for its residents.
The Sun
3 days ago
- Business
- The Sun
Fifty thousand businesses on brink of collapse over ‘immense strain' of rising wage costs
FIFTY thousand businesses are on the brink of collapse as rising wage costs put them under 'immense strain', a report reveals. The number in critical financial distress has risen by more than a fifth compared with a year ago. 2 Chancellor Rachel Reeves' increases in National Insurance costs and the minimum wage are seen as key reasons, the Begbies Traynor survey shows. Bars and restaurants at 'critical' financial level were up by 41 per cent. And there was a 39 per cent rise among travel and tourism companies. The total number hit 49,309. Those in 'significant' financial distress increased by ten per cent over the year to 666,876. Shadow Chancellor Mel Stride said: 'Labour's reckless Jobs Tax is pushing thousands of small businesses to the brink. "The lifeblood of local communities are paying the price.' Ric Traynor, of Begbies Traynor, said: 'Small and medium-sized businesses across the UK are being put under immense strain by the recent increases to employer's NI and the national minimum wage.' The British Beer and Pub Association warned 378 pubs would close this year in England, Wales and Scotland. The BBPA's Emma McClarkin said: 'We're calling on government to fulfil promises of business rates reform, mitigate costs and cut beer duty.' 2
ABC News
3 days ago
- Business
- ABC News
Banks to refund $60m of 'excessive' fees but CommBank withholds $270m
Thousands of Australians wrongly slugged more than $60 million in excessive bank fees could soon get a refund, but the national corporate regulator says Commonwealth Bank customers may not receive a cent. The Australian Securities and Investments Commission (ASIC) today revealed it had put banks on notice for incorrectly charging low-income earners who receive Centrelink payments, such as JobSeeker and Age and Disability Support payments. While the watchdog said a review of 21 banks found 800,000 customers were eligible for refunds, millions of Australians could be impacted. It comes one year after the corporate watchdog found four of the country's banks, which had a significant number of First Nations customers, had caused "financial distress". Susan Potts lives in Broome, 2,200 kilometres north of Perth, and was recently refunded ten years of fees charged by the Commonwealth Bank. She said she was only made aware of the charges after Kimberley financial counsellor Alan Gray spotted the fees in her bank statements while investigating an unrelated scam. "They were taking [fees] all these years and we're only on low income, all on disability, so it's a bit unfair," Ms Potts said. "It's just nice this is coming to the surface. We've been taken advantage of for the last 10 years." Mr Gray applied for Ms Potts' refund in May but said he was unsuccessful until the bank "did a U-turn". "I am absolutely furious with Commonwealth Bank," he said. "This is the richest bank in Australia profiting from the poorest people on the continent. ASIC's first report revealed the Commonwealth Bank, Westpac, Bendigo Bank and the ANZ knowingly kept more than 150,000 Indigenous customers in high-fee accounts despite qualifying for an account with minimal charges. That report led to a promise of $33 million in refunds. The latest ASIC report stated ANZ would commit to return $47.9 million, Westpac promised more than $9.9 million, while eligible Bendigo Bank customers will receive a share of $155,000. But the corporate regulator said Commonwealth Bank — including subsidiary Bankwest — would not refund the $270 million it had charged low-income customers between July 2019 and October 2024. Instead the bank said it would move 1.5 million eligible customers to a yet-to-be-approved 'new nominal fee account'. "That will address problems going forward for those people, but what it doesn't do is set things right for the fees they've been charged in the past," ASIC commissioner Alan Kirkland said. It is a similar story in other regional and remote communities. In Djarindjin, almost 200 kilometres away from the nearest bank branch, residents said there was confusion over who was entitled for a refund. Nyikina woman and Commonwealth Bank customer Audrey Shadforth said she only found out about the initial refunds through word-of-mouth. "I remember one of my family members got some money back," she said. When the ABC met with Ms Shadforth she had just received a letter confirming she would be repaid $400. Djarindjin mother and Bardi-Jawi woman Jenaya Cox said she did not know if she was eligible. "It would help me out with the bills I need to pay," she said. "I have a daughter now so it's a bit hard." Djarindjin financial counsellor Veronica Johnson said many of her remote clients had already been subject to financial abuse in the past. "I believe some people got paid, other people didn't. "It's just a little bit of a shemozzle in relation to people being given a fair go." ASIC's report found some banks had made progress to "better understand First Nations customers". Some institutions increased the number of interpreters on designated customer care helplines, while others had offered cultural awareness training to staff. But both financial counsellors agreed banks should do more. "It doesn't matter how many times a financial counsellor tells the big banks there is no street delivery of mail in the outback — they never, ever get the message," Mr Gray said. "I feel a lot more could be done to communicate in a fair and equitable way so people can understand what is going on," Ms Johnson said. The ABC contacted ANZ, Westpac, Bendigo Bank and the Commonwealth Bank for comment. Westpac and Bendigo Bank did not provide an official comment. An ANZ spokesperson said it had made "a number of changes" since ASIC's first report and "taken a deliberate decision to expand its remediation payments, leading to a larger cohort of customers refunded in fees and interest". The spokesperson said an "expansive approach to remediation is the right thing to do." A Commonwealth Bank spokesperson said it had already made repayments of $25 million in relation to ASIC's first report on "a goodwill basis". However, in relation to the $270 million ASIC's latest report cites should be refunded, the spokesperson said the fees "were disclosed to customers and were charged in accordance with their terms and conditions". "Where customers have incurred unusually high fees we consider goodwill adjustments where appropriate while continuing to provide access to lower-fee options," the spokesperson said.
The Independent
3 days ago
- Business
- The Independent
Almost 50,000 firms near collapse amid strain from tax hike, report claims
Nearly 50,000 UK companies are on the verge of collapse, with the retail and hospitality sectors facing the most severe impact from rising wage costs. A new report highlights that recent budget measures are placing "immense strain" on small firms across the country. The latest red flag alert from Begbies Traynor reveals a significant 21.4 per cent year-on-year increase in businesses experiencing critical financial distress, reaching 49,309 in the second quarter. Consumer-facing industries have been particularly hard hit, with bars and restaurants seeing a 41.7 per cent surge in distress. Travel and tourism firms recorded a 39 per cent leap, while general retailers experienced a 17.8 per cent jump. Begbies warned that many independent pubs may not possess the necessary scale to withstand these mounting pressures for another year without urgent action. Ric Traynor, executive chairman of Begbies Traynor, said: 'The sharp rise in critical distress underscores just how tough the economic environment is for UK businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat. 'Small and medium sized businesses across the UK are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage. 'With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point.' It is the latest sign of the toll taken on many firms by the Government's move in last autumn's budget to increase national insurance contributions (NICs) and hike the minimum wage, both taking effect in April. Labour-intense companies in particular have felt the impact, such as retailers and restaurants and bars. Troubles in the sector have been compounded by a pull back in consumer spending, according to Begbies. Julie Palmer, a partner at Begbies Traynor, said: ' Households are still grappling with their finances, and this is keeping consumer confidence volatile. 'The knock-on effect of this is clear to see in the consumer-facing sectors where margins are thin, growth is hard to come by, and the impact of higher employee costs is pushing many businesses to the brink of collapse. 'So, it is of no surprise to me that while larger pub groups might be performing well, by squeezing out extra efficiencies to counteract onerous price rises, many independent players won't have the scale to withstand the pressures of this environment for another 12 months if nothing improves.' The British Beer and Pub Association (BBPA) recently estimated that 378 pubs will close this year across England, Wales and Scotland, which it said would amount to more than 5,600 direct job losses. The wider economy is also showing signs of strain, with recent official figures revealing gross domestic product shrank by 0.1% in May, following a 0.3% drop in April. 'With no end in sight to the current economic malaise, I fear the financial burdens companies are enduring at present are simply too high for many not to avoid collapse,' said Ms Palmer.
