CRACKDOWN ON HIGH-COST LENDERS

BY TRICIA PHILLIPS THE Financial Conduct Authority is clamping down on high-cost lenders to protect people from ending up in spiralling debt.

Analysis of the industry by the city regulator found that those who turn to high-cost credit – such as short-term loans, homecollected credit, rent-to-own and guarantor loans – are more likely to be vulnerable, have low financial resilience and poor credit histories. They will often hold multiple credit products and have to juggle repayments because they don’t have enough to pay them all.

The FCA said firms shouldn’t encourage people to keep borrowing where this will harm the customer.

However, it found this was a significant part of the business for many lenders – in particular those offering small-value

ITV saw revenues fall 17 per cent in the first half of the year to £1.2billion, with underlying profits of £156million – half what they were last year.

But there are signs of improvement as productions paused over lockdown have resumed. And ITV said advertising trends improved in July and August. Emilie Stevens, equity analyst at Hargreaves Lansdown, said: “While dramatic, these results were to be expected.” loans who don’t make a profit on a customer’s first loan but make substantial amounts on subsequent loans – which traps people in rising debt. With debt levels set to rise as the furlough scheme ends and unemployment soars, the FCA has warned that some high-cost lenders are acting irresponsibly by continuing to loan money to those already struggling. The FCA said it expects firms to make necessary changes to improve customer outcomes. StepChange Debt Charity said the report is a timely reminder that high-cost credit products often put people at significant risk of financial harm. The charity’s Adam Butler said: “Since the start of the pandemic, our research has found nearly one million people have used high-cost credit products to meet everyday living costs.”

AVIVA has reported an operating profit of £1.2billion in the first half of the year, down 11.6 per cent year on year, driven by a decline in underwriting performance in the general insurance business as Covid-19-related claims increased.

Chief executive Amanda Blanc said the group would “focus on our strongest businesses in the UK, Ireland and Canada”. Joe Healey, of The Share Centre, said: “These results go to show the work Aviva has done over the year in terms of restructuring the business.”