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 updated guidance for mortgage lenders, Shelter’s CCA consultation response, and a consultation on proposed changes to court fees.
FCA mortgage guidance finalised
The FCA has finalised its mortgage guidance for lenders to help customers struggling to make mortgage payments because of the rising cost of living.
DRO Newsletter March 2023
The Insolvency Service has published DRO News March 2023. Updates include:
updated creditor details
a reminder that the Insolvency Service can only withhold address information from the DRO where there is a Persons at Risk of Violence (PARV) order
The PARV order must be in place before submission.
Shelter’s response to CCA consultation
Shelter’s Specialist Debt Advice Service has submitted a response to HM Treasury’s consultation on reforms to the Consumer Credit Act 1974 (CCA).
We are broadly supportive of the Treasury taking an interest to ensure that consumers are fully protected. But we have significant concerns with the suggestion to move well-established consumer protections from the statute books and the courts to FCA guidance and rules.
We would like to see a clear intention to put consumers first.
It is vital that key requirements and protections with strong sanctions are retained in legislation. These could be supplemented with more detailed FCA rules and guidance.
The intention of the CCA was to redress the differences in bargaining strength and background knowledge between a business and consumer. This remains important today.
SDAS response to the CCA consultation
Bank accounts for people with no leave to remain
In November 2022, the Prime Minister announced the resumption of immigration status checks on UK current account holders. A person without leave will be refused an account if they apply. If they already have an account it will be closed.
This can have an impact on debt issues. The revised Adviser Online debt and immigration article includes a section on bank account closures, and what debt advisers might do in those circumstances.
The effect of debts on immigration and nationality applications
Call for evidence on moving to a prepayment meter
Ofgem and Citizens Advice have opened a phone line to help people report their experiences of being moved onto a prepayment meter. It is part of a national call for evidence about the issue.
If the online form does not work, Ofgem can be contacted on 0800 464 3374.
Prepayment meter experience webform
CPAG Mental Health and Benefits Handbook 1st Edition online
The Child Poverty Action Group (CPAG) published the first edition of the CPAG Mental Health and Benefits Handbook. It is free to access online.
CPAG states: “Developed in collaboration between CPAG and Mind, this book is a comprehensive guide to social security benefits for people who have a mental health problem or who are struggling with their mental health."
CPAG Mental Health and Benefits Handbook 1st Edition
Cost of living survey: Greater Manchester
The Greater Manchester Money Advice Group (GMMAG) has launched a survey about cost-of-living issues and would like as many people as possible to respond. Although the survey is Greater Manchester focused, you can contribute if you fall outside that locality.
The survey is open until 14 April. The results will be shared at the next GMMAG meeting on 20 April 2023.
Greater Manchester Money Advice Group cost-of-living survey
Consultation on proposed changes to court fees
The Ministry of Justice (MoJ) is seeking views on proposed changes to the ‘Help with Fees’ remission scheme for courts and tribunal fees. The MoJ states the proposed changes are to ensure a more generous, better targeted, and efficient system.
Key proposed changes include:
revising the eligibility thresholds (income and capital)
simplifying the capital test
The consultation ends on 30 May 2023.
Revising the ‘Help with Fees’ remission scheme consultation
See page 20 onwards for the proposals and pages 62 – 63 for the questionnaire.
Benefits and debt advice available for people losing their homes
The Housing Loss Prevention Advice Service (HLPAS) is due to replace the Housing Possession Court Duty Schemes in August 2023. This mean that there will be benefits and debt advice (presumably in addition to housing advice) for people that face losing their homes.
At the Housing Law Practitioners’ Association Conference in November 2022, concerns were raised that there might not be enough skilled benefits and debt practitioners to deliver the service. These areas have been largely out of scope for legal aid for a decade.
HLPAS and Housing and Debt services from August 2023
Legal Action Group article on HLPAS
Enforcement Conduct Board business plan for 2023/24
The Enforcement Conduct Board (ECB) has published a consultation introducing its draft 2023/24 business plan. The ECB would like responses from those interested in effective oversight of the enforcement industry, such as debt advisers.
Proposals include:
developing a ‘proportionate’ oversight framework
carrying out a review of current complaints procedures
producing ‘good practice’ guidance for companies dealing with complaints
The consultation will close on 13 April 2023.
Consultation on draft business plan
‘Intimidating behaviour’ by enforcement agents
Citizens Advice has found that enforcement agents contacted more than two million people during the cost of living crisis. Citizens Advice state that the majority of those people said they felt harassed or intimidated.
The Civil Enforcement Association (CIVEA) responded in writing to Citizens Advice wanting to better understand the research.
CIVEA letter to Citizens Advice
Case law
Find debt case law summaries by topic on Shelter Legal.
Cancellation of mental health crisis moratorium
Mental health crisis moratorium cancelled as the debtor did not meet the criteria.
Time limit for trustee in bankruptcy to deal with family home
The three-year limit for a trustee to deal with the family home can be extended if the bankrupt did not disclose their interest.
Time orders
Shelter has new resources for professionals covering time orders. A court can make a time order to suspend mortgage possession proceedings. This can prevent eviction.
Steve Wilcox explains why time orders have historically been underused by the courts. Steve makes the case for advisers to refamiliarise themselves with this important tool in mortgage repossession using Shelter's new resources.
Time orders toolkit
This toolkit and guidance helps borrowers' representatives ask the court to make a time order in response to a mortgage possession claim. It contains:
template defences and counterclaims
an example witness statement
a quick reference guide for duty advisers
Use the time orders toolkit on Shelter Legal