Tagged: Citizens Advice Bureau

9 out of 10 Job Site Adverts Could Be Illegal

Nearly nine out of ten adverts on job portals fail to adhere to minimum Advertising Standards Agency (ASA) requirements, according to the Citizens Advice Bureau (CAB).

The advice charity warns that 88% of these adverts are wasting the time of thousands of job seekers struggling to find employment.

Vague job adverts are omitting vital information about wages and hours, says the CAB.

This leaves job seekers unable to determine whether a job will pay well enough to put food on the table and settle household bills.

Poor information could increase the likelihood of unsuitable applicants and risk putting people off from applying.

Full story :  http://northstar.boards.net/thread/102/out-job-site-adverts-illegal

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Fuel Banks Pilot Scheme Aims To Address Austerity-Era Dilemma Of ‘Heat Or Eat’

Families in poverty who are forced to switch off their gas and electricity supply because they are unable afford spiralling energy bills will be offered free charity fuel vouchers under a pilot scheme. The so-called “fuel banks” initiative will provide a £49 credit for struggling families who use prepayment meters in a move designed to address the austerity-era dilemma of “heat or eat”. It is being run by energy firm nPower and poverty charities including the food bank network Trussell Trust.

The vouchers, which will provide enough credit to restore power, and keep lights and heating on for up to two weeks, will be available to people in crisis referred to food banks by welfare advice agencies, GPs and social workers.

Labour MP Frank Field, who has campaigned against fuel and food poverty through his all-party Feeding Britain initiative, described the scheme as an “important breakthrough” that would help families who face an agonising choice between putting money in the gas meter or food on the table.

But critics said it was a public relations move that could not substitute for low wages and cuts to the welfare state hardship funds, or distract from the “profiteering” fuel prices charged by the Big Six energy firms – including npower.

Inability to afford even switch on the cooker or heat bathwater has been a striking feature of poverty in the UK in recent years, as low-income households struggle to cope with shrinking wages, rising living costs and welfare cuts such as the bedroom tax.

Last year it emerged that Trussell’s food banks were issuing special “kettle box” food parcels designed for clients who could not afford to cook, or in extreme cases, “cold box” parcels for those who could not even afford to heat water.

The fuel bank scheme is explicilty aimed at households who “self-disconnect” from prepayment meters to save money. Research by the Citizens Advice Bureau suggests more than 1.6 million people go without electricity or gas every year in the UK.

The scheme, which will be available to all referred people, not just npower customers, will be piloted in 21 locations across County Durham, Kingston-upon-Thames and Gloucester. If deemed successful, npower will roll out the initiative nationwide, with the aim of support up to 13,000 households in the first year.

The vouchers will be distributed using Trussell’s food bank protocols, to individuals and families referred to them after being identified by professionals as being “in crisis”. Clients would be allowed three fuel vouchers in a year.

David McAuley, chief executive of the trust, said:

“In many cases people coming to food banks can be facing financial hardship that leaves them both hungry and in fuel poverty. By providing npower fuel bank vouchers at food banks, we can make sure that people who are most vulnerable are not only given three days’ food, but can turn on the energy supply to cook it and heat their homes too.”

Matthew Cole, npower’s head of policy and obligations, said the energy company had always worked hard to help its most vulnerable customers:

“It [the fuel bank scheme] will provide immediate and hassle free support to households where often the choice is between food or warmth.”

Matthew Cole of the Fuel Poverty Action campaign said:

“These fuel banks will do nothing to hide the harmful actions of the Big Six, including home break-ins to install unwanted prepayment meters, visits by bailiffs, and energy supply disconnections to vulnerable households.

“Our current, for-profit energy system is broken – only an affordable, public, and renewable energy system will make a meaningful difference to those affected by fuel poverty and energy debt. With the huge majority of public opinion in favour of public energy, it’s no wonder the Big Six are trying to improve their image.”

The Trussell trust, which this week announced that its 445 food banks distributed enough emergency food to feed almost 1.1 million people for three days last year, said that it was looking to create more business partnerships. It already has a food collection partnership with Tesco.

Source – The Guardian, 23 Apr 2015

Darlington CAB calls for ‘rip off’ letting agents fees to be scrapped

Darlington Citizens Advice Bureau (CAB) is warning that ‘rip-off’ letting agent’s fees are causing renters financial problems in the borough.

New evidence uncovered by the charity reveals tenants are frequently charged fees often hidden by letting agents – to the tune of £337 on average nationally.

These charges come on top of advertised rent prices and deposits and in some cases can force people into debt, the charity says.

Nationally in the last year, Citizens Advice has seen around 14,500 cases of client problems with private rented rents and other charges

Most agents charge for checking references, but costs nationally range from as little as £6 to £300, according to the study.

Renters can also be hit by charges ranging from between £15 to £300 for simply renewing their tenancies.

Some agents charged £300 for credit checks that are widely available for £25.

The Still Let Down report advises that letting agents’ fees should be banned to protect tenants in the private rental sector.

Neeraj Sharma, CEO of Darlington Citizens Advice said:

“Some renters in Darlington area are being let down by agencies.

“People are being hit with fees for inventories, credit checks, and tenancy renewals.

“Adding expensive agency fees on top of rents can stretch people’s finances to breaking point.

“If you’re struggling because of letting agent’s fees, then come to Citizens Advice for help as soon as you know there’s a problem.”

Despite an Advertising Standards Authority (ASA) requirement being introduced in 2013 that agents should give clear information about fees, this study found that only a third provided full written details.

The requirement will become law later this year which will mean agents have to publish fees on their websites and in their offices.

But Darlington CAB is concerned this will have little impact.

The charity says it does not call for a fees ban in England ‘lightly’, but said alternative measures have not worked.

It adds that if charges are to be made, they should fall on landlords as they are in a better position to shop around and pick the best agency.

A fees ban was introduced in Scotland in 2012 and there is no clear evidence to suggest it has led to an increase in rental prices, the report adds.

Darlington CAB is running a Settled and safe: a renter’s right campaign, calling for better protections for private renters and anybody needing advice can visit the office at Bennett House on Horsemarket.

Source – Northern Echo, 06 Apr 2015

Hartlepool families’ debts will top £10m this year as people struggle to cope

Struggling Hartlepool families will see their debts top £10million this year, a charity has predicted.

Bosses at Hartlepool Citizens’ Advice Bureau (CAB) say they are handling 120 new enquiries a week.

The news comes after the town was identified as one of the three worst areas in the region for people facing the threat of eviction.

Bureau manager Joe Michna said the year had seen a sharp rise in the number of people asking for help after relaunching their telephone advice service, out of action for 18 months.

“We have seen a big increase in the number of local residents seeking advice and assistance with both debt and welfare benefit issues,” he said.

“The bureau has simply never been busier.”

Between April 2013 and April 2014, the bureau gave advice and assistance to residents with total combined debts of more than £8million.

Although final figures for the present financial year have not yet been collated, bosses say they expect the total to rise to more than £10million.

The problems facing Hartlepool families were highlighted in December, when the town was identified as an eviction hot-spot, with one in every 104 homes at risk of repossession.

Hartlepool had the third worst rate in the North East, behind only South Tyneside and Newcastle, according to statistics published by homeless charity Shelter.

The average level of personal debt among CAB clients is between £25,000 and £30,000, excluding mortgage liabilities, and particular problems include rent and mortgage arrears, credit card debts, personal and pay day loans and overdrafts.

We are running an innovative Mental Health Advice and Advocacy Service which is very much in demand and has given advice and assistance to 250 people who have some form of mental health condition”, said Mr Michna.

We could not provide our service without the help of our key funding bodies and we say a special thanks to the Big Lottery Fund, the Money Advice Service, the Northern Rock Foundation and the Hartlepool and Stockton Clinical Commissioning Group for their financial support.”

Anyone who wants financial support and advice can call into the bureau in Park Road between 9.30am and 3pm on Monday, Wednesday, Thursday and Friday.

Telephone advice is available on 01429 408 401 between 9.30am and 3pm on Tuesday and Thursday and the bureau can be contacted via e-mail on enquiries@hartlepool.cabnet.org.uk

or through the website http://www.hartlepool-cab.co.uk

Source – Hartlepool Mail,  27 Feb 2015

Council Tax Debt Problems Soar 20% In A Year

Council tax debt has overtaken credit cards as the most common form of debt requiring advice and support, says a leading charity.

The Citizens Advice Bureau (CAB) says it expects to help more than 191,000 people struggling to pay Council Tax in 2014/15 – up 20% on the previous year.

And according to a report from the CAB, rising rents could result in up to 122,800 people requiring help with rental debts by the end of March 2015.

The Government abolished Council Tax Benefit at the end of March 2013, meaning that some of the poorest people are having to pay for the very first time.

The move has resulted in a postcode lottery, with benefit claimants and low-income households paying more in some areas than others, depending upon each local authority’s Council Tax Reduction scheme.

A growing proportion of people are approaching the CAB for help and advice on paying rent, council tax, water and fuel debts. Meanwhile, financial issues related to credit cards, mortgages and unsecured personal loans have declined.

While more households are struggling with Council Tax and housing costs, debts resulting from credit cards are expected to fall by 12% in 2014/15 – exposing the ‘changing face of household debt’.

The mainstream credit problems of the post-2008 period have turned into problems with priority debts, says the CAB.

Despite a recent fall in fuel and petrol prices, the CAB also highlights how households have had to endure a 210% rise in energy costs over the last 10 years.

The CAB highlights how the Office for Budget Responsibility expects household debt to soar to a record high of £2.43 trillion by 2019.

There has also been a significant rise in the amount of debt held by self-employed people – up 41% to £20,000. They now represent the highest percentage of people helped by the CAB at 29%.

Citizens Advice is carrying out a separate study about the challenges that self-employed people face.

Behind the self-employed come unemployed people, who have an average debt of £17,500. Pensioners come in a close third, with an average total debt of £17,200.

13% of CAB clients had ten debts or more.

Source – Welfare Weekly,  16 Feb 2015

http://www.welfareweekly.com/council-tax-debt-problems-soar-20-year/

Loan sharks could take advantage of payday lending caps, according to CAB

Loan sharks could cash in following caps on payday lending, according to the Citizens’ Advice Bureau.

Caps limiting the interest rate and fees instated by so-called payday lenders have been introduced by the Financial Conduct Authority in a bid to protect people struggling with debt.

As of Friday, January 2, companies such as Wonga – who previously had annual interest rates higher than 5,000 per cent – must comply with regulations that will see interest and fees capped at 0.8 per cent per day.

Under the new rules, the total cost of a loan will be limited to 100 per cent of the original sum and default fees will be capped at £15.

While the move has been welcomed by the Darlington Citizens Advice Bureau (CAB), the organisation has warned the changes may cause more vulnerable people to fall prey to loan sharks.

Darlington CAB’s Dawn Gill expressed fears that loan sharks could take advantage of those now unable to access as much money as they need.

She said:

“Caps are a good thing but clients will still want money from somewhere – they’re being protected from high interest rates but companies may not lend as much.

“They may not be able to get as much as they were expecting or anything at all.

 “If they don’t get what they want, they are in danger of reaching out to someone like a loan shark instead of coming to us, for example.

“We haven’t seen it happen yet but the changes are still new and it’s a worry.”

Ms Gill urged payday lenders to work with CABs in order to help their clients manage their finances.

She said:

“The ideal situation would be for payday lenders to refer their clients to us before they take out a loan at all and let us help them to maximise and manage their income.

“I’d advise people to come to us and let us help them find ways to manage.

“We can help with benefits, cutting energy bills or working out incomings and outgoings and priorities.

“There are a lot of people prioritising paying back intimidating people who knocked at their door with money rather than paying their rent or council tax but they could end up losing their home.”

To anonymously report a loan shark, contact the Illegal Money Lending Team by emailing reportaloanshark@stoploansharks.gov.uk

or calling 0300-555-2222.

Source –  Northern Echo,  20 Jan 2015

Hartlepool foodbank set to launch debt advice service to help struggling families

Hartlepool Foodbank is set to expand its services to help people deal with debt after winning a funding boost.

The Churches Together project, which has given out a whopping 60 tonnes of food to over 8,000 individuals since launching two years ago, secured the cash prize from Lloyds Bank’s Community Fund.

The foodbank, based in Church Street, came second in a regional online public vote to secure the funding.

The £2,000 will be used to launch a new Community Money Advice (CMA) debt advice service this year.

Al Wales, co-ordinator of Hartlepool Foodbank, said:

“We are so grateful to everyone who voted for us.

“Finishing second was a big achievement and shows the level of support there is for the work of the foodbank in the town.”

Foodbank bosses decided to focus on debt-related issues as it is one of the biggest issues faced by clients who are referred to them for emergency food parcels.

The new service will be headed up by foodbank trustee Lisa Lavender.

She said:

“We are delighted with this award because it means we will be able to offer completely free, face to face, quality money advice services which will contribute to the good already being done around the issue of debt in the town by agencies such as West View Resource Centre, Citizens Advice Bureau and Credit Union.”

According to the Trussell Trust charity, which runs the Hartlepool and other foodbanks, more than one in 10 UK families have taken out a pay day loan to make ends meet in the last year.

And almost a quarter have fallen into debt to be able to provide for the family.

Managers say they are currently well stocked with beans and pasta but are very low on tinned fruit, sugar and fruit juice and custard and tin tomatoes or pasta sauce.

You can leave them in permanent collection points at Tesco Extra, in Burn Road, or Morrisons, in Clarence Road.

Supporters can also take them to the foodbank on Tuesday or Friday mornings.

Source –  Hartlepool Mail, 19 Jan 2015

South Tyneside’s ‘staggering’ debt figures – and for some the only way out is suicide

Cash-strapped South Tyneside has the second-highest level of personal debt in England, a shock new report reveals.

Statistics show that 607 clients visited the borough’s Citizens Advice Bureau (CAB) between July and September last year, with debt-related concerns.

Concern over debt now accounts for a staggering 42 per cent of that bureau’s workload.

A new national CAB report also reveals that South Tyneside has the fourth-highest level of personal debt in England and Wales.

However, when two Welsh authorities are taken out of the equation, it emerges as the second worst debt-hit area in England – just behind Stoke-on-Trent.

 Ian Thompson, chief executive of South Tyneside CAB, based at the Edinburgh Buildings in South Shields, revealed that priority debt, such as rent and Council Tax, had spiralled in recent years.

Meanwhile, advice workers are expecting a further surge in demand for the service this month as borough residents begin to count the cost of Christmas spending.

Mr Thompson revealed that debt-related problems are so great that some clients in the past have committed suicide as an escape from them.

The seriousness of the situation has led him to write a letter to every elected member on South Tyneside Council, outlining the situation and his concerns.

Mr Thompson said:

“We know there is an awful lot of debt in the borough.

“Forty two per cent of our work is working with clients with debt problems.

“That’s a staggering figure when you consider that we deal with a whole range of issues, ranging from employment to housing and much more besides.

“The sort of debt we are encountering has changed during my time with the bureau, from credit card debt and to priority debts, such as Council Tax arrears and rent arrears.

“These are life-changing, priority debts which can lead to people losing the roof over their heads.

“Unmanageable debt causes untold misery and can require the intervention of GPs for the treatment of depression.

“We have also had, as an extreme example, clients committing suicide because of the pressures they are under.

“From mid-January we are expecting a surge in the need for debt-related advice. Prior to Christmas, people tend not to think too much about debt – then the bills and credit card demands start to arrive.”

Top of CAB’s personal debt chart for England and Wales are two Welsh authorities – Denbighshire and Merthyr Tydfil.

In the North East the other worst-hit authorities are Darlington (5th), North Tyneside (8th), Gateshead (12th) and Middlesbrough (13th).

Source – Shields Gazette,  15 Jan 2015

 

Hidden debt epidemic from pay day loans hits North East teens

Desperate North teens are saddling themselves with payday loan debt with the help of their parents, it is claimed today.

A shock report by Action For Children has unearthed “worrying levels of borrowing” in the region among young people aged from 12 to 18.

Research by the charity reveals one in eight borrowed money from companies and an alarming 41% said they had used a payday loan company.

While it is illegal for anyone aged under 18 to get credit, Newcastle’s Citizens Advice Bureau (CAB) said staff had dealt with cases where parents or guardians had sought payday loans on a youngster’s behalf.

And bureau Chief Executive Shona Alexander said the hidden debt epidemic is leading to relationship breakdown within families as teenagers – the age group most likely to be on a zero hours contract – struggle to repay relatives.

It is a serious problem,” said Shona, who called for the credit age to be raised to 25. “We know that young people have forged the signatures of adults and that they have pressured parents or grandparents into getting a loan for them or being their guarantor.

“When they can’t pay them back, the adult’s credit rating is seriously damaged and then it is not just a debt problem but a relationship problem.

“Young people don’t know how to manage money. Something needs to be done.”

Frontline staff see young people seeking debt money to replace household goods, set up their first home or keep up with pals. High street lenders, including store cards, were used by a third (38%) of those able to get credit, the survey said.

Action For Children said the Government must fund more debt education to stop another generation of young people from a cycle of debt and bad credit.

It comes as the charity publishes its Paying The Price report ahead of Christmas amid fears the expensive festive season could be a trigger.

The report unveils how that 55% of children have not received any financial education.

And of those who had, 87% learnt from parents or carers while just 27% learnt about money at school.

The CAB added its Stockton branch had run a successful service helping to educate young people on the dangers of debt which had now disappeared because of public sector cutbacks.

Shona added aggressive marketing campaigns from payday loan companies were attractive to young people and credit firms were likely to change tack after reforms in 2015 to sell more guarantor-style short-term loans.

“Young people don’t understand interest rates and they don’t get into the regular habit of saving,” she said. “We have really got to start education at primary school age and keep that going. Too much of the debt education that we have is short-term.”

John Egan, Action for Children’s operational director of children’s services, said by becoming bogged down with debt from a young age, countless young people from the region could have their future marred by unemployment and mental health problems as a result.

He said: “High interest products and companies are now far too easy for young people to access.

“Some young people are less likely to have the financial skills they need, they may have to live on a low income or are not in education. They are also not able to learn about money at home or at school where other young people do. Add in baffling financial jargon and a lack of knowledge will dramatically create a vicious circle of debt, increasing the risk of mental health problems and unemployment.

“We cannot afford to let children pay this price because of a simple lack of financial education. They must be equipped with the necessary skills to make informed money decisions to give them a chance of a happy future.”

Source –  Middlesbrough Evening Chronicle,  14 Dec 2014

More turn to Citizens Advice Bureaus for help with ‘problem landlords’

A “power imbalance” between landlords and tenants has led more households to seek external help to cope in the private rented sector, a Citizens Advice Bureau claims.

In the three months to September 2014, more than 100 people received advice from the Newcastle branch of the Citizens Advice Bureau (CAB) about problems.

Issues included landlords not repairing leaking roofs, not replacing emergency lighting, the withholding of personal mail and refusals to return deposits.

Nationally, CABs helped people with 14% more repairs and maintenance problems between July and September this year than in the same period in 2013.

The organisation’s latest Advice Trends report lists difficulties getting repairs and maintenance as the most common problem reported, with the charity having helped in almost 17,000 of these issues over the past year.

The study also claims one in three private rented properties in England does not meet the Government’s decent home minimum standard, while renters have few rights and fear eviction. CABs helped with 20% more issues where people are facing eviction without arrears.

Currently, the CAB-backed Tenancies Reform Bill is going through parliament, with a House of Commons debate taking place last month and another set for January 23.

If it becomes law, the bill would prevent so-called ‘retaliatory evictions’, and has been supported by Newcastle MPs Chi Onwurah and Catherine McKinnell.

Shona Alexander, chief executive of Newcastle CAB, said:

“Many people are finding it tough dealing with their landlords in the private rented sector. We are seeing more private tenants coming to us for help.

“People are living in homes which are damp, in need of repair and in some cases dangerous. But they fear that if they ask their landlord to fix problems they may face eviction.

“The power imbalance between private landlords and tenants needs to change. It’s time for private renters’ rights to be brought up to a decent 21st century standard.”

However, the National Landlords Association (NLA), which promotes and protects landlords, argues bringing in new legislation is unnecessary.

Bruce Haagensen, NLA representative in the North East, said:

“Retaliatory eviction, if and where it does happen, is an unacceptable and completely unprofessional response. Tenants should be able to raise issues with their landlords without the fear of losing their home.

“However, the Tenancies Reform or ‘Revenge Evictions’ Bill is a response more to the fear of it happening than widespread experience and the NLA has always been concerned that there is not the weight of evidence to justify the need for additional legislation.

“Following last month’s events it would seem the majority of MPs share these reservations given that so few were present to vote for it.”

Source –  Newcastle Evening Chronicle,  08 Dec 2014