Consumers Not Informing Lenders About Loan Repayment Difficulties

Many consumers are not informing their bank if they fall into difficulties with their loan repayments.

Nearly seventy percent of consumers who suffer a sudden and significant impact on the financial situation are not informing their lender if they are struggling to meet loan repayment commitments.

Findings by the CallCredit information Group show that a worrying number of borrowers are keeping their banks in the dark when their financial situation takes a sudden turn for the worse.

With nearly two thirds of British adults experiencing some form of financial difficulty over the last year, the impact on loan defaults for lenders is high. Banks have written off £10.9bn of personal loans over the last 12 months.

Although there has been less risk tolerance in the loans market, since the credit crunch, lenders may well offer some form of help to borrowers who fall into difficulty with their repayments,. For this reason, it is important that borrowers inform their banks as early as possible if they fall into financial hardship, as Graham Lund, Managing Director of Callcredit explains:

“What’s particularly concerning is the number of people who fail to make their bank aware of sudden changes in their financial situation – and those that do get in touch aren’t always completely honest.”

It’s therefore extremely important that financial service providers use information and tools available to proactively monitor any changes in their consumers’ financial situation and have sight of the bigger picture.”