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 changes to the DRO qualifying criteria, further consultation on the ECB’s development of enforcement standards and FCA "Dear CEO" letters on the Consumer Duty.
Changes to DRO qualifying criteria
There were two changes to DRO qualifying criteria that came into effect on 28 June 2024:
the DRO debt limit increased from £30,000 to £50,000
the value of an exempt motor vehicle increased from £2,000 to £4,000
The Statutory Instruments for these changes have been released: The Insolvency (England and Wales) (Amendment) Rules 2024 SI 2024/622 amend Rule 9.9(2)(ii) IR 2016 SI 2016/1024 in respect of the exempt value of a motor vehicle. The Insolvency Proceedings (Monetary Limits) (Amendment) Order 2024 SI 2024/626 amend the Insolvency Proceedings (Monetary Limits) Order 1986, SI 1986/1996 in respect of the DRO debt limit.
Applications submitted before 28 June 2024 will be subject to the current DRO eligibility limits. Any application submitted on or after 28 June 2024 will be subject to the new DRO eligibility limits. As reported in our March 2024 ebulletin, we have received additional guidance from the DRO Team:
The HP guidance will be updated in line with the new vehicle disregard limit of £4,000. Approved intermediaries will be notified closer to 28 June.
Where a DRO is made before 28 June 2024, and the client acquires a car with a value of £2,000 (£4,000 on or after 28 June) the DRO won’t be revoked, as it’s all based on the £4,000 value. This applies to DRO’s approved prior to this date.
Any change in circumstances during the DRO moratorium must still be reported to the DRO Team. Approved intermediaries should understand how the client has managed to acquire a new vehicle (of greater value than previous vehicle/new vehicle - given the DRO asset, disposable income, and credit limits) and this must be made clear to clients.
Enforcement Conduct Board standards
The ECB are holding a further series of workshops with stakeholders to gather feedback into the development of standards for enforcement. They have also invited comments on the structure of the proposed standards, which can be submitted by email to contact@enforcementconductboard.org. They are planning for Version 1 of the new standards to come into force by November 2024.
Enforcement Conduct Board CEO blog June 2024
Standards Targeted Engagement Paper
Consumer Duty
The FCA has published a series of “Dear CEO” letters highlighting priority issues and actions required by regulated firms ahead of the impending 31 July deadline for the implementation of the Consumer Duty in relation to closed products and services.
Dear CEO letters – closed products and services
Case law
Find debt case law summaries by topic on Shelter Legal.
Impact of refusal to take part in mediation
A verbal agreement to transfer land is enforceable in the court. Refusal to mediate can impact costs.
Conway v Conway & Anor (Rev1) [2024] EW Misc 19 (CC)
Calculating beneficial interest in property
When calculating beneficial interest in a property, the court must examine changes to the common intention of the parties and their financial contributions.
Allen v Webster [2024] EWHC 988 (Ch)
Debt relief orders and company director disqualification
Luke Oliver explores the strict requirements for company directors who apply for a debt relief order, and the consequences for failing to follow them.