Calls for investigation into how foreign states misuse the Companies House system to bypass sanctions.

MPs have urged the Government to address the growing issue of foreign states exploiting UK-registered companies, including those linked to Iran, to circumvent sanctions. The request follows reports revealing that sanctioned entities, such as Iranian oil firms, have been using UK-based shell companies to move money and access bank accounts in the country.

Liam Byrne, the chair of the Business and Trade Committee, raised concerns about how state actors are manipulating systems like Companies House to further their interests while evading international sanctions. In a letter, he called on the Department for Business and Trade to disclose an estimate of how extensively UK corporate vehicles are being misused for such purposes.

Byrne also highlighted the use of Limited Liability Partnerships (LLPs) as a vehicle for these activities and questioned what measures were in place to tackle the growing abuse. He emphasised that this issue is not isolated, but part of a larger trend of using UK-registered companies for illicit activities, including fraud, terrorism, and money laundering.

The committee chair also requested that the Government publish an estimate of how much fraud costs UK businesses annually. According to some estimates, fraud could be costing UK firms up to £157.8 billion a year.

Byrne noted that Companies House had received over 10,000 applications in 2021-22 regarding fraudulent addresses and 2,000 applications to remove incorrect director listings from the corporate register. He stressed that victims had reported financial fraud and serious organised crime linked to these fraudulent activities.

Rising inflation, interest rates, and the end of pandemic relief make tackling credit card debt essential.

For many Americans, financial stress is mounting, particularly for those who had little savings before the pandemic. A combination of rising inflation, higher interest rates, and the end of pandemic-era relief measures, such as the student loan moratorium, has contributed to an alarming increase in credit card debt.

In the third quarter of 2023, U.S. credit card debt surpassed $1.05 trillion, with the average interest rate hitting 21.5%, the highest level since the Federal Reserve began tracking rates in 1994. According to Moody’s, credit card delinquencies have now exceeded pre-pandemic levels, showing clear signs of financial strain despite the overall health of consumers.

If you’re struggling with mounting credit card debt, here are some key strategies to help alleviate the pressure:

NEGOTIATE A LOWER INTEREST RATE

Start by contacting your credit card company to request a reduction in your interest rate. While the Federal Reserve is not expected to cut rates soon, the average credit card interest rate is already much higher than the Federal Reserve’s rate. Many credit card companies offer promotional rates, which can help you avoid accumulating excessive interest, especially if you transfer balances to low or zero-interest cards for a limited time. However, balance transfer fees may apply, and the balance must be paid off before the promotional period ends to avoid extra charges.

FOCUS ON PAYING OFF HIGH-INTEREST DEBT FIRST

The “avalanche method” is an efficient strategy where you focus on paying off high-interest debt first. This is the most effective way to reduce the overall cost of your debt. Alternatively, the “snowball method” involves paying off smaller debts first to gain psychological momentum before tackling larger ones. Some financial advisors recommend this method for its motivational benefits.

Nonprofit credit counselling services, like those offered by the National Foundation for Credit Counseling, can provide further guidance on managing your debt.

CONSOLIDATE LOANS AND REDUCE STUDENT LOAN PAYMENTS

Consolidating loans can help streamline your finances, especially if you can secure a fixed interest rate. The Federal Trade Commission’s Consumer Advice guide offers useful tools for debt management. When it comes to student loans, consolidating them and exploring options to lower monthly payments is crucial. Programs like Public Service Loan Forgiveness and income-driven repayment options can provide much-needed relief for borrowers.

CREATE A BUDGET THAT FACTORS IN INFLATION

Although inflation has decreased from its peak, the cost of essential goods and services remains high. For example, the price of bread rose from $1.54 in December 2020 to $2.02 by the end of last year, and rent for a two-bedroom property increased from $1,424 to $1,713 during the same period.

America Saves, a non-profit campaign, provides budgeting advice to help manage these higher costs. Additionally, service providers like utilities, phone companies, and insurers are often open to negotiations. Calling and requesting the lowest rate or available discounts can lead to meaningful savings.

As financial pressure continues to mount, taking proactive steps to manage your credit card debt and adjust your budget can provide much-needed relief in these challenging times.

Proposed changes aim to address disparities in victim assistance and reduce arbitrary denials.

The U.S. Justice Department has put forward significant reforms to state-administered victim compensation programmes, targeting racial inequities and minimising unjustified denials of financial aid. This proposal, introduced by the Office for Victims of Crime, marks a major shift in how compensation claims are managed across the country.

The changes come in the wake of an investigative report by the Associated Press, which revealed that Black victims were disproportionately rejected for compensation in many states. These rejections were often based on subjective and implicit biases that permeate the criminal justice system.

If the proposal is accepted, it would prohibit states from considering a victim’s criminal history when assessing claims. It would also eliminate some of the most arbitrary reasons that often led to rejections, particularly those linked to victim behaviour before or after the crime. For example, the practice of denying claims under a category known as “contributory misconduct” would be severely restricted. This category has been used in many instances to accuse victims, often without evidence, of having played a role in their own victimisation.

Each year, thousands of Americans rely on state compensation programmes to cover essential expenses, such as funeral costs, medical treatments, lost wages, and crime-scene clean-up. However, the AP investigation found that Black victims in 19 out of the 23 states that provided racial data were denied at disproportionately high rates. In some states, Black applicants were nearly twice as likely to be rejected compared to white applicants. Between 2018 and 2021, these denials resulted in millions of dollars in lost compensation for Black families.

The proposed rule changes also specify that state programmes should no longer recover funds from victims who have received assistance through crowdfunding platforms like GoFundMe. This addresses another area of concern, where victims’ financial support was sometimes unfairly questioned.

The proposal now enters a 60-day public comment phase, and it may take several months to review the feedback before any final changes are made.