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Debt Matters round up February 2023

The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.

News and legal updates

In this month's legal round-up, find details on forced pre-payment meter installations, new Household Support Fund guidance, and a consultation on Buy-Now-Pay-Later draft legislation.

Forced pre-payment meter installations put on hold

On 6 February 2023, Lord Justice Edis ordered magistrates to stop listing applications for warrants of entry to install pre-payment meters (PPMs) until further notice.

The Guardian article

Ofgem guidance for energy suppliers

Ofgem wrote to energy suppliers on 15 February 2023. Until 31 March 2023 suppliers will stop:

  • forced installations of PPMs

  • remote switching of smart meters to PPM unless the client agrees

  • new court applications for warrants to install a PPM unless theft is suspected

Ofgem published a press release on 21 February calling on energy suppliers to use the current pause in PPM installations to:

  • check whether their recent forced and remotely switched PPM installations were carried out correctly

  • consider removal and compensation where rules were not followed

Ofgem letter to suppliers (15 February 2023)

Press release on next steps for energy suppliers (21 February 2023)

Enforcement agent survey

The Taking Control campaign has published a survey for debt advisers to complete about current practices by enforcement agents and enforcement firms. The survey closes on 6 March 2023 and there is a chance to win a £50 Giftpay voucher for completing it.

Enforcement agent survey 2023

New Household Support Fund guidance (England only)

The DWP has published new guidance on the next tranche of the Household Support Fund (HSF) for 1 April 2023 to 31 March 2024. For the first time, the new round of HSF can be used to fund advice services such as debt and benefit advice (see paragraph 40).

Household Support Fund guidance

FCA censures Amigo Loans

The FCA has publicly censured (expressed strong disapproval) Amigo Loans for not conducting adequate affordability checks. The alternative would have been a fine of nearly £73 million.

FCA censures Amigo

Money and Pensions Service Adviser Panel

The IMA is helping the Money and Pension Service (MaPS) recruit two expert debt adviser panels. The IMA states that the panels are to work with MaPS in an advisory capacity to help inform its future approach to debt advice commissioning and other topics.

Contact the IMA by emailing office@i-m-a.org.uk if you want to know more.

Expert Debt Adviser Panel Recruitment

CPAG Debt Advice Handbook online

CPAG’s Debt Advice Handbook is free to access online thanks to the continued support from the Money and Pensions service.

Visit their website to view the book.

CPAG Debt Advice Handbook

Buy-Now-Pay-Later draft legislation: consultation

HM Treasury has published a consultation on the proposed draft legislation that will bring Buy-Now-Pay-Later (BNPL) products under FCA regulation.

The consultation closes on 11 April 2023.

BNPL consultation

The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2023

FCA ban on debt packager fees

The FCA has published a consultation on its intention to ban debt packagers from receiving paid referrals from debt solution providers. It believes that these referrals lead to potential harm to individuals arising from this conflict of interest, such as individuals paying more than necessary for a solution.

Debt packagers are authorised commercial firms that provide debt advice services but do not typically provide debt solutions.

The consultation is open until 2 March 2023.

CP23/5: Debt packagers

Case law

Find debt case law summaries by topic on Shelter Legal.

Costs against litigants in person

Claimant litigant in person ordered to pay £17,500 costs order on the small claims track for ‘unreasonable behaviour’ following a claim based on dishonesty and fraud.

Reed v Boswell

Subrogation of rights

A creditor who paid an outstanding mortgage to comply with a court order was subrogated to the mortgage lender’s right to recover the debt.

Kaye v Lees

Breathing space and mental health crisis moratoriums

Shelter Legal has published a new interactive guide to breathing space for tenants in rent arrears.

The guide covers every stage of proceedings from when a notice is served through to when the court has scheduled an eviction, explaining what steps a landlord can or cannot take.

It includes template letters to tell a landlord or the court about a breathing space or mental health crisis moratorium, and links to resources for more information.

The guide supplements improved and expanded content on breathing space and mental health crisis moratoriums on Shelter Legal.

Dealing with a tricky debt case for a client? 

Speak to Shelter's debt experts about your case. Call our helpline on 0330 058 0404 or start a webchat with one of our advisers on this page.

Our helpline and webchat service is open Monday-Friday, 9am-5pm.