The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round up includes news about claimant details being included on the Register of Judgments, Orders and Fines, suspension of the motor finance redress scheme, and a consultation on the recovery of tax debts.
Claimant details to be included on the Register of Judgments, Orders and Fines
The Ministry of Justice has announced that the names of County Court and High Court claimants will be included on the Register of Judgments, Orders and Fines from 20 July 2026. However, there will be a three-month transitional period where claimant data will not be published until 20 October 2026 to allow Registry Trust to test its systems and processes.
The change is not retrospective and will only apply to new judgments from 20 July 2026.
The Register of Judgments, Orders and Fines (Amendment and Transitional Provision) Regulations 2026
Better data. Better understanding. Better outcomes.
Motor finance redress scheme partially suspended
Since we reported on the motor finance redress scheme in our April 2026 ebulletin, legal challenges have been launched by a consumer rights group and three motor finance lenders.
The challenge is due to be heard either in December 2026 or February 2027, with a judgment expected in the following months. Until the legal process concludes, lenders do not need to calculate or pay compensation to people owed money under the scheme.
If the scheme is upheld, and the judgment isn’t appealed, the FCA expects payments under the scheme to begin in 2027. The FCA has not said what they will do if the scheme is overturned.
Motor finance scheme partially suspended
Motor finance redress scheme – Insolvency Service position
The Insolvency Service has confirmed that if an individual took out a motor vehicle finance agreement before their bankruptcy or discharge, any claim for redress will belong to the Official Receiver.
For debt relief orders, the DRO Team has said:
We need to be notified if an individual is applying for this (either as part of any new application or for individuals already in a DRO). Any funds due to the individual would be considered an asset.
We need the brief details of the vehicle and finance agreement and the status of any claim/redress.
Insolvency and motor finance redress
HMRC consultation on recovery of tax debts
The government has issued a consultation on proposals to extend existing HMRC enforcement powers to recover lower value tax debts from customers who have persistently not engaged with HMRC.
This power would enable HMRC to deduct monthly instalments directly from a customer’s UK bank or building society account. The customer would be notified in advance and given a final opportunity to pay or contact HMRC. HMRC expects the power will apply to debts of no more than £10,000.
The consultation closes on 28 August 2026.
Insolvency Service consultation on the Insolvency Rules
The review considers whether the Insolvency Rules are fit for purpose, how to reduce administrative and regulatory burdens, potential changes to address technical issues, and futureproofing the Rules. The government states that it will consider all responses to this consultation before completing the Personal Insolvency Review.
The consultation closes on 6 October 2026.
Insolvency Service second review of the Insolvency Rules 2016
Funding for quicker processing of DRO applications
The Money and Pensions Service (MaPS) has provided funding of £900,000 to the Insolvency Service for new technology to process DRO applications faster. The Insolvency Service says that the new technology will also allow debt advisers to send DRO cases directly to the Insolvency Service portal. This is intended to make the DRO application process more ‘streamlined’ by cutting administration.
Insolvency Service press release: new tech boost
Insolvency Service report on ‘improving confidence’
The Insolvency Service has published a ‘confidence in the regime’ report, which looks at how various stakeholders view actions and policies that the Insolvency Service has made. The report found that confidence has increased in the insolvency regime, particularly DRO and IVA reforms were strongly supported. Concerns remain around high bankruptcy costs.
Confidence in the Regime report
Surviving Economic Abuse report
Surviving Economic Abuse (SEA) has published a report highlighting that a third of young women aged 16 – 24 are experiencing economic abuse.
The research reveals how economic abuse can begin early and escalate quickly, disrupting the years when young people would typically be gaining qualifications, entering the workforce and establishing their financial independence.
Surviving Economic Abuse report
Caselaw
Find debt case law summaries by topic on Shelter Legal.
Secretary of State for Work and Pensions v Payne and another
Deductions from benefits cannot continue during a DRO moratorium or bankruptcy.
Read the summary of Secretary of State for Work and Pensions v Payne and another on Shelter Legal.
Spotlight
This month's article from Shelter.
DRO resources
Our consultancy service receives the highest number of enquiries about debt relief orders (DROs). This month’s Spotlight focuses on our existing Shelter Legal DRO resources that advisers might find useful.
Our debt relief order pages include advice on the qualifying criteria, the treatment of disability benefits, how a debtor’s conduct can affect a DRO and how possession proceedings and DROs interact.
This page includes topics such as applying to hide an address from the insolvency register, contingent debts, council tax arrears, how advisers can determine if a vehicle is an asset, and when to report a preference.
Our practitioner notes page contains an archive of the DRO Team’s responses to enquiries from our service, including queries on how to treat tobacco and alcohol expenditure, HP agreements and time orders, and sending money abroad.