DEMSA Key themes summary

What You Need to Know This Week Consumer Duty and IVAs: Increased scrutiny on creditor voting and IVA variations discussed at a Credit Strategy roundtable. UK Economy Growth: The economy grew by 0.1% in Q4 2024, driven by construction and services, while US inflation rose to 3% in January 2025. Insolvency Service Leadership Change: Chief Executive Dean Beale to step down in May 2025, initiating a recruitment process. Fraud, Credit, and Compliance Convergence: Financial services firms are integrating these functions… Read more

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

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

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

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

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