Credit, collections & insolvency news
A pilot study by data and analytics firm, LexisNexis has revealed that banks and lenders may be denying loans to 80% of adults with thin credit profiles, when they are actually low-risk customers. This means that UK lenders could be missing out on nearly £3 billion of low-risk lending, assuming an average loan application of…
Read more
Credit Connect’s hosted its sixth Online Lending Technology Think Tank last week which saw lending strategies and the future of the sector discussed by eight leading professionals from a variety of lending sectors. The event was attended by over a hundred lending professionals from banks, credit card providers building societies, loan providers, credit unions and…
Read more
As consumers continue to navigate cost-of-living pressures, new research shows that younger age groups face significant barriers when it comes to accessing credit according to a survey of 1,000 UK borrowers by Tink. The research found that over three quarters (78%) of 18-34 year olds have had a loan application rejected. When asked why they’d…
Read more
The Institute of Directors (IoD) Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, rose slightly to -58 in December, up from -64 in November. The index also showed that was also slight improvements in expectations for revenue, employment, investment and in directors’ optimism for the prospects of their own…
Read more
With the pandemic having accelerated the shift away from face-to-face credit applications, the fraud landscape continues to evolve – and this trend shows no signs of a reversal. Given the inherently remote and anonymous nature of internet-based credit decisioning, this presents higher risks for lenders. The lender landscape has changed too. More consumer payment options,…
Read more
Lack of transparency means customers could receive very different balance transfer offers to what they applied for according to research by TotallyMoney. Regulators require lenders to only provide 51% of successful applicants the advertised credit card offer. Additionally, they aren’t expected to disclose the potential differences in limits or APRs that may be issued when…
Read more
Close to one million consumers will experience severe and long-term damage to their credit scores if they cancel their energy payments in October according to research by Credit Karma. Credit Karma says combining data on the damage caused to scores from missing just one utility bill payment and polling to estimate the number of consumers…
Read more
Data covering quoted household interest rates on consumer credit products released by the Bank of England has revealed the rising cost of borrowing for UK households according to analysis by Freedom Finance. With the Bank hiking interest rates by 0.25% last Thursday and inflation expected to show a climb yet again for April, the data…
Read more
New research from Experian has revealed that there are over 5 million (5,049,129) people in the UK who are virtually invisible to the financial system, because there is insufficient information available about their financial track record. These people, referred to as credit Invisibles, find it difficult to access mainstream financial services or have to pay…
Read more
Global information and insights company TransUnion has announced that it has partnered with CreditLadder, the rent reporting platform, to incorporate UK tenants’ rental payments into their credit information. Rental payment history of those individuals using CreditLadder can now be recorded in their TransUnion credit report, giving finance providers a more holistic view of financial standing…
Read more
Demand for consumer credit has yet to match the pre-Covid peak seen in January 2020, but the latest Market Pulse from Equifax suggests that rapidly rising applications for credit, more than doubling between November 2020 and August 2021, point to returning financial confidence, especially among the young. Younger borrowers, in particular those aged 18 to…
Read more