DEMSA Key themes

KEY THEMES+ ¦ DEMSA Summary

What you need to know this week The Bank of England has reduced its growth forecast for 2025 to 0.75% and cut interest rates to 4.5%. Homeowners on mortgage tracker deals will see a typical £29 fall in monthly repayments due to the interest rate cut. Abby Thomas has stepped down as CEO of the Financial Ombudsman Service; interim leadership is in place. The Financial Ombudsman Service will start charging Claims Management Companies £250 per case from April 2025. The… Read more

KEY THEMES+ ¦ DEMSA Summary

What you need to know this week Canada and Mexico announce retaliatory tariffs in response to new US import taxes. AstraZeneca cancels a £450m expansion due to reduced government support. Significant attention on welfare reform following pre-election promises with a focus on distinguishing genuine claimants from those gaming the system. Barclays resolves payment issues but continues updating customer bank balances. The FCA writes to claims management firms emphasising Consumer Duty compliance. The next Consumer Understanding challenges event is scheduled for… Read more

KEY THEMES+ ¦ DEMSA Summary

What you need to know this week The ICO emphasised AI's potential to contribute £47 billion annually to the UK economy and its role in fostering responsible innovation. Money mule activity cases rose by 11% in the first half of 2024, highlighting the need for robust financial crime policies. The FCA reported over 11.7 million active open banking users, with variable recurring payments (VRPs) enhancing consumer control over finances. StepChange December 2024 data showed “lack of control over finances” overtaking… Read more

KEY THEMES+ ¦ DEMSA Summary

What you need to know this week UK economy grew by 0.1% in November 2024, but retail sales dropped 0.3% in December. ICAEW reports significant decline in business confidence, suggesting stagflation risks. FCA launched initiatives on AI and digital innovation, promoting safe AI usage in financial services. FSCS proposed a £103.6m management expenses budget for FY 2025/26, with consultation ongoing. Citizens Advice reported concerns over inappropriate IVA placements due to poor debt advice. Ofwat consultation on Priority Service Registers (PSR)… Read more

KEY THEMES+ ¦ DEMSA Summary

What you need to know this week Severe cold in Scotland has led to a 30% increase in water pipe bursts, with further issues expected due to fluctuating temperatures. Government borrowing costs have risen to a 16-year high, while the pound has hit a 14-month low, raising concerns about interest rate increases. Over half of UK businesses plan price hikes within the next three months, citing rising costs and taxes. Scammers are targeting consumers with fake winter fuel payment texts,… Read more

KEY THEMES+ ¦ DEMSA Summary

What you need to know this week Data from Money Wellness revealed 3,994 visits seeking debt advice during the Christmas period, highlighting growing financial pressures. Rising costs are expected in 2025, including food, energy, water, and council tax. Citizens Advice identified low awareness of water social tariffs, with 42% of eligible individuals unaware of their existence. Darryl Matthews joins Inicio AI as CX Director, emphasising strategic creditor liaison in 2025. The FCA investigated unauthorised debt and claims management activities, conducting… Read more