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 the latest DRO news, a new quality assessor for MaPS-funded cases, and warnings about unregulated debt advice providers.
DROs and guidance on pensions for those aged under 55
The DRO Team has updated their pensions guidance for approved intermediaries completing DRO applications for clients aged under 55.
An adviser needs to find out if a client under 55 has a pension and check if it is approved.
If the pension is approved and the client can’t access their pension as they are under 55, the value of the pension is not relevant. The approved intermediary can tick ‘no’ on the DRO application form and no other details are required.
If the pension isn’t approved it is an asset and must be listed on the asset page.
If the debtor chooses to access their pension during their DRO, it is considered income and any lump sums should be apportioned. The client should work with their debt adviser to complete a new financial statement if their circumstances change and report this to the DRO Team.
For those aged 55 and over, the usual process for completing the pension assessment applies as outlined in the online DRO guidance under ‘Pensions’.
It is hoped that the DRO Team is going to send out an update and so the guidance is subject to change.
DRO newsletter May 2023
The Insolvency Service has published DRO News May 2023, which should have been circulated to all DRO Competent Authorities. The newsletter includes:
creditor updates
a reminder to check how mobile phone contracts should be scheduled in a DRO application
a reminder on the documents that the DRO Team needs to see when there is an IVA showing as ‘current’
British Gas stops using contractors to install prepayment meters
British Gas has confirmed that it will not use an external contractor to install prepayment meters. The ban on force-fitting meters has been lifted and British Gas is bringing the work in-house.
Equal Treatment Bench Book updated
The Judiciary has published the revised April 2023 Equal Treatment Bench Book (ETBB), which aims to increase awareness and understanding of the different circumstances of people appearing in courts and tribunals.
This updated edition represents the first major revision in three years, reflecting the effects of Covid on society and the justice system.
Money and Pensions Service guidance for supporting customers
The Money and Pensions Service (MaPS) has published new guidance for organisations supporting customers with mental health difficulties.
MaPS best practice guidance document
New independent quality assessment service announced
MaPS has announced that Recognising Excellence has been awarded to deliver an Independent Quality Assessment Service (IQAS).
The aims of the IQAS include:
delivering value for money
ensuring compliance with MaPS standards
providing meaningful information to improve customer outcomes
Government Debt Strategy published
The Cabinet Office has published its 2023 – 2026 Government Debt Strategy, outlining the government’s approach to debt owed to government.
The strategy includes specific ‘missions’ such as:
‘prevent’ – by consistently assessing vulnerability and affordability to reduce the number of people falling into problem debt
‘resolve’ – by resolving debt to agreed standards and pursuing those who avoid repaying
‘improve’ – by identifying opportunities to improve government’s capability to resolve debt efficiently and effectively
2023-26 Government Debt Strategy
Websites giving unregulated debt advice
The Insolvency Practitioners Association (IPA) has highlighted three companies that are either breaching or acting without the necessary FCA permissions. These companies are:
www.moneyadvicedebthelp.co.uk
Debt Help Group Ltd
Debt Clearers / debtclearers.co.uk
People seeking debt advice should not use these websites as they are providing unregulated debt advice.
IPA and FCA warnings: unauthorised websites
Fake enforcement agent scam
The Civil Enforcement Association (CIVEA) has warned about receiving fake enforcement notices from fake enforcement agents (bailiffs).
CIVEA states that those notices are being sent from Debt Recovery Solutions, Court Enforcement Bailiffs (aka CEBG Legal) and WIRO with demands for payment of unpaid parking debts.
Warning of imposter enforcement agents
Call for the government to put limits on creditor contact
The Money and Mental Health Policy Institute (MMHPI) has called for the government to put limits on how often creditors are able to contact people about overdue bills.
Money and Mental Health Policy Institute campaign
New guidance released on tackling discrimination complaints
The Financial Ombudsman Service (FOS) has published new guidance on how firms should approach and resolve complaints about discrimination. This might be where people tell the FOS that they have been treated unfairly, differently or have been excluded because of who they are.
FOS discrimination complaints guidance
Water customers’ views of their water supplier
The Consumer Council for Water has published its annual Water Matters survey, which tracks customers views on their water company. Households have overall high satisfaction with their water supply, but concerns remain about affordability, long-term supply, and trust in water companies.
The Water Services Regulation Authority (Ofwat) acknowledges that many people are satisfied with the customer service received from their water companies. However, Ofwat is planning on a new licence condition for water companies to make sure the full diversity of customers’ needs are met.
Consumer Council for Water - Water Matters 2022 report
Ofwat announces new licence condition
Cost of living impact report
The Money Advice Trust has published a spotlight briefing on the impact of the cost of living on callers to National Debtline. The findings are from a client survey of 587 National Debtline clients.
The results show an overall increase in the amount of people falling behind on essentials and feeling the impact of the rise in the cost of living.
‘Counting the Costs’ Spotlight Briefing May 2023
Enforcement Conduct Board new business plan
The Enforcement Conduct Board published a response to its draft Business Plan consultation and released its final business plan 2023-24.
The ECB’s aims include to:
review the current processes for complaints
give guidance on accessible complaints systems
consult on how to identify and deal with vulnerability and affordability
collect data evidence from the enforcement and debt advice sectors to better understand what is happening in reality
Enforcement Conduct Board: current consultations
Case law
Find debt case law summaries by topic on Shelter Legal.
Time orders
The test for courts to apply when deciding whether to make a time order in response to a mortgage lender's possession claim.
Southern and District Finance Plc v Barnes and another [1995] 27 HLR 691, CA
Council tax liability
Shelter has a new page for professionals covering council tax liability after a tenant moves out of their rented property. It includes information about who is liable for council tax, empty properties exempt from council tax, and complaints.
Read about council tax liability after a tenant moves out on Shelter Legal.
A debt adviser contacted the SDAS consultancy line to ask about council tax liability in HMOs. Read the consultancy case study.