“Rent-to-own” shops that sell appliances and furniture for small weekly payments but with a high interest rate face a price cap.
However, the financial regulator will not rush to impose the same restrictions on bank overdrafts.
The Financial Conduct Authority (FCA) has spent nearly two years looking at the cost of high interest borrowing.
It has now outlined a package of plans for rent-to-own, doorstep lending and catalogue shopping.
High-cost credit is used by three million people in the UK.
Single-parents aged 18 to 34 are three times more likely to have a high-cost loan – such as a payday loan, doorstep loan or pawnbroking loan – than the national average.
“The proposals will benefit overdraft and high-cost credit users, rebalancing in the favour of the customer,” said FCA chief executive Andrew Bailey.
Campaigners had called for a cap on the interest and charges faced by those using high-cost credit, including overdrafts.
They said that cap on the cost of payday loans, introduced in 2015, should be a template for the rest of the high-cost credit market.
About 400,000 people have outstanding debt with rent-to-own firms such as BrightHouse from which they buy household appliances, paying the money back over three years.
After interest, they can end up paying many multiples of the cost price.
The FCA said it had seen cases when people had ended up paying more than £1,500 for essentials like an electric cooker that could be bought on the high street for less than £300.
“The FCA believes the harm identified in this market is sufficient in principle to consider a cap on rent-to-own prices. It will now carry out the detailed assessment of the impact that a cap could have on the rent-on-own sector and how it might be structured,” the regulator said.
Such a cap would not be in place before April 2019.
John Glen, Economic Secretary to the Treasury, said the measures would help the most vulnerable avoid being stung by “dodgy deals”.
That includes people like Kenneth Murray, who says he had to buy a laptop from a rent-to-own firm business as he could not get credit from a high street electrical store.
“I had multiple debts that I was trying to juggle, and no stable source of income. I ended up taking out loans to pay loans,” he said, although he has now managed to halt this cycle.
More than three million people have dipped into an unauthorised overdraft in the course of a year, exceeding their agreed limit.
In 2016, firms made an estimated £2.3bn in revenue from overdrafts, with 30% of this from unarranged overdrafts. The charges for those who go into the red without agreement can be high and complex.
The majority of unarranged overdraft charges were paid by only 1.5% of customers, who paid about £450 a year in fees and charges, the FCA said.
The regulator is proposing that banks offer more information to customers, including mobile alerts, about when and how they go into the red.
It is also considering a ban on fixed fees, which can lead to relatively high charges for a small unarranged overdraft.
Overdrafts in numbers
Those aged 35 to 44 are most likely to have some form of overdraft
A total of 10% of all 18 to 24-year-olds have exceeded their overdraft limit in the last 12 months
Source: FCA, Financial Lives, October 2017
Part of discussions will be a “potential backstop price cap for overdrafts”, but it is not an immediate proposal. The FCA said that it needed to overcome potential legal issues that had been encountered in the past.
Gareth Shaw, of consumer association Which?, criticised the delay: “Last summer, the FCA expressed serious concerns about how unarranged overdrafts work, and now almost a year later it is still refusing to take action.”
Gillian Guy, chief executive of Citizens Advice, said it was disappointing the regulator had failed to protect users of doorstep loans and unarranged overdrafts as well as buy-to-own customers.
“There are some strong potential remedies on the table for people struggling with overdrafts – the onus is now on the FCA to act quickly,” she said.
But Eric Leenders, managing director of UK Finance, said big banks were making overdrafts more transparent.
“This builds on the unarranged overdraft alerts already available and supported by the regulator, which have already reduced charges to consumers by as much as 25%,” he said.
Greg Stevens, chief executive of the Consumer Credit Trade Association, which represents 300 lenders, welcomed the FCA’s “cautious approach” and said it was “taking its time to get the balance right”.
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A Malian migrant, hailed as a hero after mounting a daring rescue to save a small boy dangling from a balcony in Paris, is to be made a French citizen.
Mamoudou Gassama won widespread praise after climbing the outside of the building to save the four-year-old.
Video showed him being cheered on by spectators as he pulled himself from balcony to balcony to the fourth floor.
After meeting him at the Elysee Palace, President Emmanuel Macron said he would be made a naturalised citizen.
He personally thanked Mr Gassama, gave him a medal for courage and said he would also be offered a role in the fire service.
Why migration is in the genes of Malians
Mr Gassama is said to have arrived in France last year, taking the long and dangerous journey to Europe via a boat over the Mediterranean to Italy.
The drama that thrust him to fame unfolded on Saturday evening on a street in the north of the city.
Mr Gassama said he had been walking past when he saw a crowd gathered in front of the building.
He told Mr Macron: “I just didn’t have time to think, I ran across the road to go and save him.
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“I just climbed up and thank God, God helped me. The more I climbed the more I had the courage to climb up higher, that’s it,” he added.
He said that the boy was crying when he hauled him to safety and had also suffered an injured foot.
Firefighters arrived to find the child had already been rescued.
“Luckily, there was someone who was physically fit and who had the courage to go and get the child,” a spokesperson said.
Local authorities quoted by French media said the boy’s parents were not at home at the time.
The father has been questioned by police on suspicion of leaving his child unattended, judicial sources say. The mother was not in Paris at the time, it is believed.
Paris Mayor Anne Hidalgo was among those to praise the 22-year-old’s heroism and said she had called him to thank him.
She referred to him as the “Spiderman of the 18th”, referring to the Paris district where the rescue took place, calling him an “example for all citizens”.
Skip Twitter post by @Anne_Hidalgo
Un grand bravo à Mamoudou Gassama pour son acte de bravoure qui a permis de sauver hier soir la vie d’un enfant. J’ai eu plaisir à m’entretenir avec lui aujourd’hui par téléphone, afin de le remercier chaleureusement. https://t.co/DP5vQ1VZYh
— Anne Hidalgo (@Anne_Hidalgo) May 27, 2018
End of Twitter post by @Anne_Hidalgo
France’s new Malian hero
Alex Duval Smith, West Africa correspondent, BBC News
Mr Gassama’s four-storey dash is a reminder of another Malian hero who gained national prominence in January 2015 during an extremist attack on a Jewish supermarket in Paris.
A young Malian employee, Lassana Bathily, was credited with saving the lives of six hostages including a baby when he led them to a safe hiding place, escaped, then directed gendarmes to their rescue.
Two weeks later – after six years of struggling to secure legal residency in France – Mr Bathily was given a medal and a French passport by then President François Hollande.
In 2016, he wrote a book ”Je ne suis pas un heros” (I am no hero) and created a charity whose first project was to provide irrigation for his home village in western Mali.
Like Mr Bathily’s selfless leadership to save the hostages, Mr Gassama’s heroic climb to save the boy cements the image of Mali as a country with a culture of old-fashioned public spiritedness.
Storms caused flash flooding across the West Midlands as more than a month’s rainfall deluged parts of Birmingham in just one hour on Sunday.
A man in his 80s died in Walsall after his vehicle was submerged in flooding and parts of Northamptonshire were hit.
The Met Office has issued yellow weather warnings of rain and thunderstorms for this afternoon for southern England and Wales.
The South East could also experience the hottest day of the year so far.
West Midlands Police said officers were called to Lichfield Road in the Rushall area of Walsall shortly after 02:00 BST where the man in his 80s was reported to be stuck in his car in flood water.
He was taken to hospital where he died a short time later. His family has been informed.
West Midlands Ambulance Service (WMAS) paramedic Peter Bowles was at the scene and tweeted to say firefighters and ambulance staff had to swim to reach the man.
Four paramedics entered the flood water and carried out life support at the water’s edge before he was taken to Walsall Manor Hospital, WMAS said.
Police said some roads in Birmingham were still affected by flooding and advised drivers not to ignore road closure signs.
One major route in the city was left impassable because of water up to 5ft deep.
Jacqui Kennedy from Birmingham City Council said the operation to clear up debris and repair roads was under way.
The Far Cotton area of Northampton was severely flooded along with major roads in the county including the M1 and A45.
The Environment Agency has issued multiple flood warnings and alerts covering much of central England.
Met Office meteorologist Craig Snell said temperatures could hit highs of 28C or 29C in the South East.
He said: “It all depends how much cloud develops. There’s a chance we could see the warmest day of the year.”
How hot is it where you are?
Spectacular lightning strikes parts of UK
The Met Office said a site at Winterbourne, in Edgbaston, recorded 58mm of rainfall in just one hour on Sunday afternoon, and 81mm in a 12-hour period.
The monthly average for the West Midlands region in May is 55mm, Mr Snell said.
But he said the torrential rain had been “very localised”, pointing out that another site 10 miles away at Coleshill recorded just 3mm of rain in 12 hours.
BBC journalist Rebecca Woods said she had driven past a large number of flooded and closed roads in the Harborne and Selly Oak areas.
She said she had seen flooded houses and it had taken her 90 minutes to drive about five miles.
In Sir John’s Road, Selly Park, homes flooded and cars were under water, while wheelie bins floated down the road.
Resident Stu Dunigan said water was above waist height, almost submerging cars on the street.
It is the second time in two years the street has flooded. More than 100 homes were flooded June 2016 causing some residents to leave their houses.
Some had only recently returned before Sunday’s floods.
Trevor Thomas, who lives in Kings Heath, had to leave his home when it was flooded with six inches of water.
Mr Thomas, 51, is severely disabled and had to be taken to stay with his 73-year-old mother, Pat Thomas, at her home in Kings Norton.
She said the house was not suitable for her son and they both had to sleep on the sofa as she could not get him upstairs to bed.
Northampton council leader Jonathan Nunn and councillor James Hill visited St Leonard’s Road in Far Cotton to speak people affected by flooding.
Mr Nunn said: “We want to know exactly what happened and work out ways to prevent it happening again.”
Part of the M1 and A45 in the county were under three feet of water and drivers were trying to pass through the floods.
The A5 was closed in both directions in the border area of Leicestershire, Warwickshire and Northamptonshire, between the junctions of the A426 at Churchover and the A428 near the Dirft rail terminal to the east of Rugby.
Warwickshire Fire and Rescue Service (WFRS) said it had also been “extremely busy” dealing with flooding calls on Sunday evening.
Italy looks set to have an interim government before fresh elections, in a political crisis which pits Eurosceptic populists – winners of the March election – against pro-EU establishment politicians.
It took weeks of negotiations for a populist coalition to take shape, but Italy is now back to square one.
What makes this a crisis?
President Sergio Mattarella’s rejection of the populists’ choice for finance minister – Prof Paolo Savona – exposed tensions over the euro. The 81-year-old economist had advocated a “Plan B” for Italy to exit the euro.
The new prime minister-designate, Carlo Cottarelli, is an International Monetary Fund (IMF) veteran close to Brussels technocrats, solidly pro-euro and pro-austerity. He is known in Italy as “Mr Spending Review”.
Italy is now split between powerful new insurgent parties and struggling traditional parties.
How does it rate on the scale of Italian crises?
Pretty high. But Italy is no stranger to political turmoil. It has had 64 governments since World War Two.
The anti-establishment populists – the Five Star Movement (M5S) and the League – were enraged by the president’s veto over their proposed government.
M5S leader Luigi Di Maio called for President Mattarella to be impeached. League leader Matteo Salvini suggested that Germany was behind the president’s veto; but Italy was not a “colony”, he said.
This stand-off is new territory for Italy, because populists won an unprecedented popular mandate to govern – the first time they have achieved that since WW2.
So the proposed caretaker government will have to tread carefully. Mr Cottarelli says new elections will be held in early 2019, or after August if he fails to survive a confidence vote. The latter appears the most likely.
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Some Italians already suspect an EU-engineered plot, after what happened in 2011. Back then Italy was getting punished by global markets – it risked default as interest rates on its government bonds soared. Then-Prime Minister Silvio Berlusconi was ousted and replaced by former EU commissioner Mario Monti.
Is the president’s position shaky?
Not immediately. Mr Di Maio’s call for his impeachment is unlikely to get majority support in parliament. The constitution envisages impeachment only for “high treason” or for “acting against the constitution”.
President Mattarella has certainly shown that his job is much more than ceremonial.
It is up to him to appoint the government. But rejecting the M5S-League team was politically risky. Their anti-establishment appeal to voters may grow even stronger now, as the interim government is accused of doing Brussels’s bidding.
What does it mean for the euro?
Italy is the eurozone’s third-largest economy but has a government debt burden of €2.3tn (£2tn; $2.7tn). That is a colossal 132% of GDP and the second-highest debt level after Greece’s.
The League’s Matteo Salvini insists that “nobody ever thought of exiting the euro – it wasn’t in our manifestos, nor in Savona’s manifestos”.
His M5S partners dislike the euro but no longer plan to hold a referendum on the single currency.
However, the euro is very much on the populists’ agenda, because they promise a renegotiation of key eurozone agreements, such as the Stability and Growth Pact and the Fiscal Compact. Those pacts commit states to budget discipline and strict targets set by Brussels.
They want to shift EU priorities away from free-market liberalism, towards social welfare.
They plan to pump billions more euros into social policies in Italy, such as boosting pensions and benefits for the poor.
Opinion polls suggest that the League’s popularity has risen since the election. So another election within months might give the League – right-wing and anti-immigration – a commanding position.
The latest quick fix in Italian politics is unlikely to reassure the rest of the EU.
A knock on the door by two detectives changed everything for Mark, bringing back the horrors of sexual abuse he had suffered as a child. Like other survivors of child abuse, he says he found it hard to get any support afterwards.
The black and white photo of Mark was taken in December 1980 on his first day at Grafton Close, a council-run children’s home in south-west London. Weighing just 5st 8lb and measuring just 5ft 2in tall, he looks younger than his 14 years.
His young life was already troubled and it was about to get a lot worse.
Now, 38 years later, Mark is still dealing with the consequences.
“When I was a kid, I was as kind-hearted a child as you can possibly imagine,” he says.
“What happened to that child is so horrendously wrong, and it’s horrendously wrong that it should just be allowed to continue.”
Mark was sexually abused by a manager at the children’s home. Other children were abused there too and some were taken elsewhere to be abused.
Although he was small and vulnerable, Mark was a very bright and articulate boy, who managed to cope by outsmarting people. “I used language as a weapon,” he says.
He had few qualifications but in his 20s and 30s made a successful career for himself working in commercial radio sales.
He explains his coping strategy as managing to lock away his terrible childhood traumas in a box marked: “Do not open ever.”
But it all came crashing to a halt in January 2013 when the police came knocking on his door.
At the time, the UK was going through a collective panic over child abuse.
It was not long after the revelations about Jimmy Savile, and the police were investigating a series of allegations about high-profile paedophiles operating in Westminster during the 1970s and 1980s.
The visit, by two officers from the Metropolitan Police, to Mark’s house in the Manchester area came out of the blue. During the visit – and in a subsequent formal interview – they asked about the abuse he suffered.
Mark said his carefully constructed mental box was now in ruins – its dark secrets scattered over the floor for everyone to see. He says the police left him to deal with the consequences, and offered no support.
“I went through 18 months to two years of deep, deep depression,” he says. “It’s like you’re gradually walking through a tunnel, and your friends become further away – they visit less.
“You’ve got a choice – a choice to either fight to get back to the light, or let it drift away. I fought to get back to the light.”
Mark says he suffered from suicidal thoughts, and became very anxious. He suffered panic attacks in public places, and was terrified of people even walking past his front door.
Shortly after the police visit he discovered to his horror that someone had posted the names of a list of child abuse victims online, and that his name was listed among them. Another post described him wrongly as a “rent boy”.
Mark became embroiled in a long battle with the police to get them to force the websites to remove the postings, but the police failed to act. He eventually managed to get them removed himself.
The man who abused him was charged with sexual offences, but he died shortly before the case came to court. Mark would have been a victim and witness at the trial but never got his day in court.
He has recently completed a 24-week course of Cognitive Analytic Therapy, delivered by clinical psychologist Vanessa Fay, of the Greater Manchester Mental Health NHS Foundation Trust.
“That knock on the door from the police changed everything for Mark. He couldn’t push it down anymore, and how painful it is. He wasn’t aware of how complicated and nuanced that impact can be on relationships, and how he related to himself,” she says.
Mark has been diagnosed as suffering from Complex Post Traumatic Stress Disorder (CPTSD), also known as Complex Trauma. He says he managed to access a course of treatment only after a relentless struggle with his GP for support.
Complex Trauma is poorly understood, rarely recognised, and few psychologists are trained to treat it. The condition is not even officially recognised but is expected to be included as a distinct category of PTSD in an international classification system known as ICD-11, published by the World Health Organization.
Bryony Farrant, chief psychologist to the independent Child Abuse Inquiry, said official recognition will make a big difference to survivors of abuse and therapists.
“It would mean professionals will need to be trained and have an understanding of complex trauma – what it looks like, what causes it, and identified treatments and support. But for victims and survivors it would be particularly important because often with the abuse they have experienced, part of it is about secrecy, about that person being silenced, and disempowered.”
Mark blames the police for “re-traumatising” him and failing to offer support. He is most upset with their failure to deal with the online postings naming him publicly as a child abuse victim.
He made a series of complaints to the police and the Independent Police Complaints Commission, and the Metropolitan Police eventually apologised. They admitted their systems were at fault and he should have had more support. But they said no individual officer was at fault and there was no police misconduct.
The Met said in a statement to the BBC that officers are trained to be sensitive to victims, and they are directed to support agencies.
Napac – the National Association for People Abused in Childhood – says there are more than 11 million adult survivors of child abuse in the UK, and they deserve much better specialist support.
Research by the NSPCC in 2011 found that 25% of 18-24 year olds suffered severe maltreatment including sexual abuse as children.
Mark Samaru believes his therapy has helped him process the ordeal he went through. He is also very aware that most survivors get nowhere near the support he has fought to get.
“It’s a measure of our society how we treat the most vulnerable,” he says. “Nobody who’s been abused in childhood deserves it, and yet they all deserve as much support as society can give them. And they’re not getting it.”
Listen to Andrew Bomford’s full piece on BBC Radio 4’s World at One.
Real Madrid forward Gareth Bale will not return to Tottenham this summer.
Bale’s future in Spain is in doubt after he said he needed to play more often following Saturday’s Champions League final win over Liverpool.
Tottenham had a buy-back clause inserted into the Wales international’s contract when he left to join Real for £85m in 2013.
It offered Spurs the opportunity to match any accepted bid from a Premier League club for Bale, 28.
However, the forward has a contract with the Spanish giants until 2022 and is thought to earn more than £400,000 a week after tax.
It means his likely transfer fee and wages would make a Tottenham bid unrealistic.
Bale will make any decision on his future in conjunction with his advisers.
In the short term, they intend to wait until the dust has settled on his man-of-the-match performance in Kiev before deciding their next course of action.
It is not completely out of the question he might stay at the Bernabeu but, after winning the Champions League on four occasions with Real, the player is not willing to accept a bit-part role in Zinedine Zidane’s squad.
Although the clamour for Bale should he decide to leave Spain would be huge, very few clubs could match his present financial demands.
Manchester United have been linked with the 28-year-old frequently over the past few years but invested heavily in Alexis Sanchez in January, after which manager Jose Mourinho said he would be concentrating on strengthening in other positions during the summer transfer window.
Manchester City appear to be more interested in renewing their interest in Leicester’s Riyad Mahrez, whilst Chelsea’s uncertain managerial situation makes a move to Stamford Bridge more complicated in the short term.
Away from England, Paris St-Germain have the finances, and Bayern Munich and Juventus have the pulling power, to be viewed as potential destinations.
Coverage: Daily live radio and text commentaries on BBC Radio 5 live, the BBC Sport website and app.
Cameron Norrie said he played the “best tennis of his life” as he reached the French Open second round after opponent Peter Gojowczyk retired with an injury when the Briton was leading 6-1 2-0.
The 22-year-old British number three dominated the world number 43 from the baseline during the opening set.
The German then required treatment between sets, eventually retiring after losing the first two games of set two.
Norrie will now play French 15th seed Lucas Pouille.
“I think that was the best tennis I’ve played in my life,” said the world number 85, who this week broke into the top 100 after reaching the semi-finals in Lyon.
“I was in the zone, not making any unforced errors and dictating play.
“I had a high level throughout that match and I think if he’s winning that match then there is no chance he is retiring.
“I outplayed him throughout and it was unfortunate for him to pick up an injury.
“I would have loved to keep playing, I was feeling really good out there, feeling confident.
“At the US Open I got my first win with a retirement so it would actually be nice to win a match – but I’ll take it.”
Left-hander Norrie won his opening service game before breaking the German to take a 2-0 lead. Gojowczyk, realising he was getting no joy from the baseline, decided instead to come to the net to put pressure on the Briton.
However, this plan had little positive effect and he was broken again in the sixth game before Norrie wrapped up the first set.
Gojowczyk received lengthy treatment from the trainer in the interval, but when play resumed he could barely move and was broken to love in the opening game. And after losing the next, he threw in the towel after only 41 minutes of play on court six.
Russell Fuller, BBC tennis correspondent
Cameron Norrie says he was nervous and struggling to relax before the match, having had little prep time at Roland Garros after his run to the Lyon semi-finals last week.
But you would not have had a clue about that from the evidence of the first set.
Just like his Davis Cup debut in Spain in February, Norrie gave the impression of a man totally at ease in his first ever French Open match.
The 22 year old is spending time here in Paris with his parents, who he had not seen since January, and will also have the support of his college coach for the second round match with Pouille.
Devin Bowen coached Norrie up until last year, when he competed for Texas Christian University’s ‘Horned Frogs’ tennis team.