Latest news with #debtCollection
South China Morning Post
26-06-2025
- South China Morning Post
Hong Kong loan shark syndicate that hired teen debt collectors broken up
A loan shark syndicate in Hong Kong recruited young people through chat groups to vandalise debtors' homes with red paint and paid them up to HK$1,000 (US$127) per job, police have said as they arrested 22 people, including key members of the gang and four teenagers. Advertisement In an operation conducted between June 16 and Wednesday, police arrested 19 men and three women, aged between 16 and 62, in connection with 29 cases related to illegal debt collection. The cases involved the loan sharks recruiting debt collectors, often youngsters, through agents that used encrypted chat groups. 'It is similar to the operation of a food delivery platform. They will place orders of splashing red paint in the group and indicate the districts involved … Interested group members can then take the order,' Tsang Chun-kit, acting deputy district commander of Tseung Kwan O district, said on Thursday. Tsang said the agents required individuals to take photos to prove they had completed their job, before paying them HK$500 to HK$1,000 per order. 'This convenient model can attract a lot of young people who wish to make quick money,' Tsang said. Advertisement 'We caution them against taking part in illegal debt collection activities for making quick money.' The force said that the loan shark targeted individuals facing economic difficulties, telling them they would not have to submit proof of their income to take out a loan. Five residents took the offer, each borrowing amounts ranging from HK$25,000 to HK$120,000.
The Independent
25-06-2025
- Business
- The Independent
The two council tax rules that may change under government reforms
A landmark consultation has been launched by the Ministry of Communities, Housing and Local Government (MCHLG) to reform the UK 's Council Tax system. The consultation aims to make Council Tax fairer, more transparent, and easier to manage, addressing issues with the current levy. Key proposed changes include an overhaul of aggressive Council Tax debt collection tactics, which currently allow councils to demand full annual payments after one missed payment. The initiative also seeks to make it easier for households to challenge their Council Tax bands, potentially removing the current six-month rule that complicates appeals. Money expert Martin Lewis has welcomed the consultation, stating that many parts of the system are broken, though a full revaluation of bands is not included in the scope. Martin Lewis reveals how council tax could change – and urges people to act
The Independent
25-06-2025
- Business
- The Independent
Martin Lewis reveals how council tax could change – and urges people to act
Martin Lewis has revealed how Council Tax could soon be changing across the UK as a landmark consultation is launched. The money expert says this is a chance for the 'broken' levy to be 'fixed' with Labour inviting anyone interested to share their views. Some key changes are on the table, including an overhaul of Council Tax debt collection, and making it easier for households to challenge the rate at which they are paying. The initiative has been launched by the Ministry of Communities, Housing and Local Government (MCHLG), the department headed up by deputy prime minister Angela Rayner. Minister for Local Government and English Devolution, Jim McMahon OBE said: 'As part of our Plan for Change, we're putting working people first.' 'We are listening and taking action to make council tax fairer, more transparent and easier to manage. Under our plans, local government will be there to support, and not to punish, people who fall behind.' Under current rules, councils are allowed to employ debt collection tactics that have been criticised as aggressive by campaigners. If a household misses a single payment, local authorities can ask for the whole year's bill after six weeks, and enforce this request with bailiffs. This is one of headline measures under consultation, after the government confirmed it would be included in May. Mr Lewis has encouraged anyone interested to participate in the consultation and have their views heard. Also under consideration is changing or scrapping the rule which makes challenging a household's Council Tax band much harder after six months in the property. Experts predict that hundreds of thousands of households are likely in the wrong band, meaning this change would make it easier for them to raise the issue. However, an overall revaluation of council tax bands is not in the scope of the consultation, despite last being carried out in 1991. Responding to the consultation's launch, Mr Lewis said: Many parts of the Council Tax system are broken, and having called for some of these fixes for nearly 20 years, I'm delighted the government has listened and rapidly launched this long-due consultation, including many of the administration areas I hear the most complaints on.' 'Council Tax rapid and aggressive debt collection methods currently hurt millions and disproportionately affect those with mental health problems.' 'Plus, as council tax bands haven't been revalued since the stop-gap drive-by valuations first done back in 1991 – while looking at that isn't in the scope of this consultation – it's only right that if people think they're wrongly in too high a band, as 100,000s likely are, the government is consulting on making it easier to challenge, so people can pay the right price.'
Al Arabiya
18-06-2025
- Business
- Al Arabiya
How to Improve Your Credit Score If You've Missed Student Loan Payments
Millions of Americans are seeing their credit scores drop now that the US government has resumed referring missed student loan payments for debt collection. But there are things you can do to help your score rebound. Courtney Alev, consumer advocate at Credit Karma, said it's understandable that people have missed payments because of the mixed messages around student loans. 'We're really at a moment of enormous empathy for the consumer,' she said. 'But now it's critical to make a plan.' The US Department of Education paused federal student loan payments in March 2020, offering borrowers relief during the economic chaos of the coronavirus pandemic. Though payments technically resumed in 2023, the Biden administration provided a one-year grace period that ended in October 2024. Last month, the Trump administration restarted the collection process for outstanding student loans, with plans to seize wages and tax refunds if the loans continue to go unpaid. According to the Federal Reserve Bank of New York, about one in four people with federal student loans were more than 90 days behind on payments at the end of March. Here's what you should keep in mind: How your credit score is calculated A credit score is a formula that helps lenders determine how likely you are to pay back a loan. Credit scores are based on your history of payments and your credit utilization and range from 300 to 850. Experian, Equifax, and TransUnion–the three main credit bureaus–each have their own model to calculate credit scores. Factors frequently used to calculate your credit score are: – Bill payment history – Length of credit history – Current unpaid debt – How much of your available credit you're using (also known as credit utilization) – New credit requests – If you have had debt sent to collection, foreclosure, or a bankruptcy How to check your credit score Each of the three credit bureaus allows you to check your credit score for free at least once a year, and many banks offer this service as well. Other companies, such as NerdWallet, Credit Karma, and WalletHub, also offer the service. How to know if your score is good A score of 670 or higher is considered good. If your credit score is over 750, that's considered great. Fair credit scores are in the 580–669 range, and a score below 580 is considered poor. How to improve your credit score if it has dropped In the first three months of 2025, 2.2 million student loan recipients saw their scores drop by 100 points, and an additional 1 million had drops of 150 points or more, according to the Federal Reserve Bank of New York. The study's authors attribute those changes to loans falling into delinquency, or 90 days or more of nonpayment, which is then reported to credit bureaus. To avoid those consequences or to improve your score, the simplest steps include paying at least the monthly minimum payment and setting up auto-pay to make sure payments are never late. Alev says that it's worthwhile to get into the habit of regularly checking your score so that you're never surprised by any changes and you can dispute any errors or negative dips. 'It's important to monitor for mistakes you need to dispute,' she said. 'If you've only missed one payment, or it's your first time missing a payment, you can often call and ask for forgiveness because of a history of solid payments.' Many borrowers reported that they never received notice from the Department of Education that their student loan payments were resuming, even though they were meant to have been notified at least three weeks in advance. Monitoring your credit score regularly means you can catch any changes before it's too late to correct significant hits. Other ways to improve your score Maintaining a steady, low credit usage, known as credit utilization, is another straightforward way to improve your score, Alev said. 'It's kind of a confusing term, but credit usage is key,' she said. 'It's essentially what percentage of your available credit you're currently using. If you have a $10,000 credit limit each month and you use $2,000, that's twenty percent credit utilization. An easy rule of thumb to remember is to keep your utilization below thirty percent. That's where you see the score impact accelerate.' Checking your credit score doesn't hurt, for the most part Checking your credit score doesn't lower it unless you're making a 'hard inquiry,' which is only done when requesting a line of credit. 'Soft inquiries,' which just let you know your current score, don't affect your score. When you do apply for a line of credit, such as for a mortgage or a car loan, lenders do make hard inquiries, which appear on your report and can affect your credit.
The Independent
18-06-2025
- Business
- The Independent
How to improve your credit score if you've missed student loan payments
Millions of Americans are seeing their credit scores drop now that the U.S. government has resumed referring missed student loan payments for debt collection. But there are things you can do to help your score rebound. Courtney Alev, consumer advocate at Credit Karma, said it's understandable that people have missed payments because of the mixed messages around student loans. 'We're really at a moment of enormous empathy for the consumer,' she said. 'But now it's critical to make a plan." The U.S. Department of Education paused federal student loan payments in March 2020, offering borrowers relief during the economic chaos of the coronavirus pandemic. Though payments technically resumed in 2023, the Biden administration provided a one-year grace period that ended in October 2024. Last month, the Trump administration restarted the collection process for outstanding student loans, with plans to seize wages and tax refunds if the loans continue to go unpaid. According to the Federal Reserve Bank of New York, about 1 in 4 people with federal student loans were more than 90 days behind on payments at the end of March. Here's what you should keep in mind: How your credit score is calculated A credit score is a formula that helps lenders determine how likely you are to pay back a loan. Credit scores are based on your history of payments and your credit utilization and range from 300 to 850. Experian, Equifax and TransUnion, the three main credit bureaus, each have their own model to calculate credit scores. Factors frequently used to calculate your credit score are: — Bill payment history — Length of credit history — Current unpaid debt — How much of your available credit you're using (also known as credit utilization) — New credit requests — If you have had debt sent to collection, foreclosure, or a bankruptcy How to check your credit score Each of the three credit bureaus allow you to check your credit score for free at least once a year, and many banks offer this service as well. Other companies such as NerdWallet, Credit Karma and WalletHub also offer the service. How to know if your score is good A score of 670 or higher is considered 'good.' If your credit score is over 750, that's considered 'great.' 'Fair' credit scores are in the 580-669 range, and a score below 580 is considered 'poor.' How to improve your credit score if it has dropped In the first three months of 2025, 2.2 million student loan recipients saw their scores drop by 100 points, and an additional 1 million had drops of 150 points or more, according to the Federal Reserve Bank of New York. The study's authors attribute those changes to loans falling into delinquency, or 90 days or more of nonpayment, which is then reported to credit bureaus. To avoid those consequences, or to improve your score, the simplest steps include paying at least the monthly minimum payment and setting up auto-pay to make sure payments are never late. Alev says that it's worthwhile to get into the habit of regularly checking your score, so that you're never surprised by any changes, and you can dispute any errors or negative dips. 'It's important to monitor for mistakes you need to dispute,' she said. 'If you've only missed one payment, or it's your first time missing a payment, you can often call and ask for forgiveness because of a history of solid payments.' Many borrowers reported that they never received notice from the Department of Education that their student loan payments were resuming, even though they were meant to have been notified at least three weeks in advance. Monitoring your credit score regularly means you can catch any changes before it's too late to correct significant hits. Other ways to improve your score Maintaining a steady, low credit usage, known as credit utilization, is another straightforward way to improve your score, Alev said. 'It's kind of a confusing term, but credit usage is key,' she said. 'It's essentially what percentage of your available credit you're currently using. If you have a $10,000 credit limit each month, and you use $2,000, that's a 20% credit utilization. An easy rules of thumb to remember is to keep your utilization below 30%. That's where you see the score impact accelerate.' Checking your credit score doesn't hurt, for the most part Checking your credit score doesn't lower it unless you're making a ' hard inquiry,' which is only done when requesting a line of credit. Soft inquiries, which just let you know your current score, don't affect your score. When you do apply for a line of credit such as for a mortgage or a car loan, lenders do make 'hard inquiries,' which appear on your report and can affect your credit. ___ The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
