Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
Man Reading Debt Collection Letter
October 12 2020

Lenders in talks with government about outsourcing the recovery of BBLS loans

Michael Lloyd Industry News, News, Top 3 Bounce Back Loan Scheme, debt collection

Lenders are in talks with the government about outsourcing the recovery of billions of pounds worth of loans under the bounce back loan scheme (BBLS) to debt collectors.

According to The Times, government officials have contacted debt collection companies, including Arrow Global, to see if they could take on the loans to seek repayment, in return for a fee.

This is because banks believe the task would prove too big to handle themselves as the scheme has a huge flow of loans and predicted problems with repayments.

A report from the National Audit Office last week showed that a “very high level” of fraud risk among BBLS borrowers could result in government losses of between £15bn and £26bn.

As of 20 September, the scheme, which provides loans up to £50,000 backed by a 100 per cent government guarantee, had delivered £38.02bn to 1.3 million businesses.

Ideas being considered for recoveries include whether a new agency could manage the process, if the loans could be moved to a state-run bank, or setting up a panel of debt collectors signing up to a code of practice, with lenders maintaining responsibility for the treatment of customers.

This follows news that the Treasury is reportedly working with banking trade body UK Finance to develop a standard framework for dealing with BBLS borrowers in difficulty.

The government has already unveiled additional support for borrowers, including the option to extend government-backed loan terms from six to 10 years.

Earlier this month MPs demanded answers from the government after it was revealed that the British Business Bank had raised concerns to the Treasury about fraud and value for money of BBLS.

“At the Winter Economy Plan, we announced Pay As You Grow, which provides flexibility for firms repaying bounce back loans – giving them the option of extending the length of the loan from six years to 10, interest-only payment periods, and payment holidays,” a spokesperson from the Treasury said.

“We will continue to look at ways to support firms as they recover.”

Blockchain innovation can analyse P2P contracts ThinCats creates specialist PE deal team in response to demand

Related Posts

Plant Growing Out Of Coin Jar On Table In Office -  Investing / Business Success Concept

Industry News, News, Top 3

Abundance Investment working on “new opportunities”

Model Houses Hanging By Strings

Industry News, News, Top 3

LendInvest bond value lost £5.8m during pandemic

Sonnenuntergang hinter den modernen Wolkenkratzern der Skyline von London, Großbritannien

Industry News, News, Top 3

Everything we know about the CBILS successor scheme (so far)

Popular posts:

  • FCA lumps P2P lending in with higher risk products again
  • 4th Way gives its views on Zopa and Funding Circle returns
  • UK operations help Funding Circle push for profit in…
  • Investors ready to put more money into P2P lending
  • CrowdProperty unveils board changes and hunt for CFO
  • RateSetter outlines benefits of debt consolidation loans
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by