ROAR Insights

Summary Commissioned by the Insolvency Service, this October 2024 report investigates the prevalence of poor take-on practices in Individual Voluntary Arrangements (IVAs). The research assesses whether IVA providers follow regulatory protocols, particularly around consumer advice, affordability assessments, and fee transparency. The findings aim to improve IVA oversight and ensure better consumer outcomes under evolving insolvency regulations. Key Take Aways High Rate of Poor Take-on: 60% of sampled terminated IVAs showed poor practices during setup.Prevalent Issues: Income and expenditure mismanagement occurred… Read more

Summary This FCA market study explores the provision of premium finance, focusing on motor and home insurance policies. The study aims to assess whether the market offers fair value to consumers and how effectively competition functions. With rising insurance premiums, the demand for premium finance has increased, particularly among vulnerable customers. The FCA seeks to identify any regulatory or structural issues and potential remedies to ensure good consumer outcomes under the Consumer Duty framework. Key Take Aways Consumer Usage: Over… Read more

Summary This report, prepared by the England Illegal Money Lending Team (IMLT), provides insights into the experiences and support needs of borrowers impacted by illegal money lenders (“loan sharks”). It examines borrower demographics, the impact on mental health and financial well-being, and outlines strategies to support victims, including engagement with community partners and debt advisory services. Key Take Aways Borrower Demographics: 59% female borrowers; 67% of households earn under £20,000 annually.Housing: 49% live in social housing, while 13% own homes.Mental… Read more

Summary This report, published by Ofwat, analyzes customer debt levels in the water sector across England and Wales. It highlights debt challenges amidst rising costs and outlines water companies’ obligations under the “Paying fair” guidelines to provide tailored support to vulnerable customers. The report also emphasizes the need for continued monitoring and improved debt management strategies as bills increase in 2025. Key Take Aways Debt Overview: Over 2.5 million households (8.2%) are in arrears, with an average debt of £822.Total… Read more

Summary This policy statement from the Financial Ombudsman Service outlines new rules for charging case fees to claims management companies (CMCs) and other professional representatives referring complaints. The initiative, under regulations from HM Treasury, seeks to create a fairer funding model by distributing costs more equitably between service users and financial firms while encouraging better-prepared complaint submissions. Key Take Aways New Case Fee: A maximum fee of £250 applies to cases referred by CMCs, with a £75 minimum fee for… Read more

Summary The Financial Conduct Authority (FCA) released a recent paper on “Consumer Duty Board Reports: Good Practice and Areas for Improvement.” It reviews the first annual board reports submitted by firms to assess their adherence to the Consumer Duty, which sets high standards for customer protection across financial services. The review covers practices in governance, data usage, consumer outcomes, and business strategies, highlighting both exemplary practices and areas requiring improvement. Download as PDF: Summary Insights LINK: Original FCA Link Key… Read more