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 taking coins from table near empty piggy bank, last savings, poverty concept
October 28 2020

Lenders urged to be understanding as payment breaks come to an end

Marc Shoffman News, Personal Finance News, Top 3 Alastair Douglas, forbearance, loans, mortgages, TotallyMoney

Consumers still struggling to pay back debts could see their credit scores damaged for the next six years, as protections are taken away this month for over quarter of a million people still on payment holidays.

Lenders have been granting three-month payment breaks since March and data from UK Finance shows 323,700 people were still using them for loans and mortgages as of the start of October.

But with the deadline for forbearance requests just days away, comparison website TotallyMoney is warning that borrowers must not be left out in the cold and says lenders must reassess how they treat borrowers before automatically adding missed payments to the debt which could push people into arrears.

Read more: FCA issues new guidance on personal loan payment breaks

Read more: New fintech service to streamline lending data analysis

Late payments and defaults will remain on credit reports for six years, TotallyMoney warns.

“With so many trying to make ends meet while protecting their health, the last thing anyone needs right now is more worry about how their finances could be affected further by these drastic changes,” Alastair Douglas, chief executive of TotallyMoney, said.

“That’s why it’s unfortunate that consumer credit scores will suffer for such a long time for anyone unable to keep up with their repayments.

“A lot has changed over the past three months, so a reassessment to see what more can be done to protect the public would be ideal.”

Read more: FCA relaxes SMCR rules during pandemic

P2P lending administrations ‘could take several years’ Singapore-based P2P lender rebrands and plans expansion

Related Posts

Businessman separates the wooden puzzle with a picture of money. The concept of financial management and distribution of funds. Saving and investing. Property division. Legal services.

Industry News, News, Property, Top 3

50pc of the Octopus Choice portfolio has already been realised

Andrew Bailey

Industry News, News, Top 3

BoE’s independent directors back Bailey over LCF collapse

Rhydian_Lewis5122_RateSetterLogo

Industry News, News, Top 3

RateSetter confident of growing Metro Bank’s unsecured lending

Popular posts:

  • Funding Circle strikes another CBILS securitisation
  • How the government distorted the P2P market
  • RateSetter to stop investment withdrawals from 26 March
  • FCA puts the brakes on Buy2Let Cars
  • Metro Bank plans to offer RateSetter lending through…
  • How to invest in an IFISA with £100 or less
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