We Introduce You

The Consumer Credit Counselling Service (CCCS) published its yearbook today. The yearbook shows the annual trends of debt amongst a set of given age groups.

Although the yearbook shows a worrying trend in the increase of overall debt, I find it mildly amusing that the Press Association moulds the publication of the yearbook into a public declaration by the Charity that the Nation is spiralling out of control.

One of the trends the yearbook shows is an increase in the number of people making calls to their centres. But can we use these figures to judge the overall profile of UK debt? Given that the CCCS competes against the Citizens Advice Bureau and The National Debtline for ‘business’ I suggest not. It could be that the awareness of the CCCS has increased by either internal or external promotion work. The increase in the number of younger people calling for debt help could also be down to an increase in ‘willingness’ in this age group to ask for help.

We can’t deny the levels of debt are increasing, which is worrying, but we must look at figures from all sources before we make generalised conclusions.

Late last year the FSA said it was looking at Mortgage Exit Administration Fees (MEAFs) and today it’s given an update.

“After examining a number of mortgage contracts as part of its probe, the FSA said it considered some were not as clear as they could be in explaining what costs would be charged to the consumer at what time or event in the life of the contract.

The watchdog said it was also not clear that increases in MEAFs were proportionate to any increases in associated mortgage exit costs incurred.

As a result of its inquiries, the FSA confirmed it has now asked some lenders to consider whether their terms might be unfair and to provide evidence of how decisions to increase their MEAFs were taken.”

It expects to get the replies in the next month or so and will probably provide an update then. As with all these things, any changes to legislation upstream affects the little fish downstream.

As I’ve already said, I’m a great fan of horse racing and today we see Day One of Royal Ascot at the newly re-furbished track in Berkshire. Some might think, I’d be packing my saddle bags and catching the big old Iron Horse down there, but it’s one particular event I’ve never really been interested in attending.

Don’t get me wrong, the horse racing’s good, and there’s probably some luvely ladies to look at. The problem is, a Festival like Ascot is attended by 95% of people either on a corporate jolly or there for the social occassion and only 5% for the Horse Racing. In contrast, the Cheltenham Festival is attend by 95% Horse Racing fans and 5% who can’t remember why they are there.

Not original I know - but I think the mighty Godolphin will have a good Festival - watch out for Proclamation and Electrocutionist!