Why are you re-starting credit reference reporting during the Coronavirus pandemic?
Updated 2 years ago
Important: This situation is fast-changing and we’re regularly reviewing our approach. The information below is based on the current guidance from the Financial Conduct Authority. If anything changes and your Coronavirus arrangement is affected, we’ll be in touch to update you and to let you know what it means for you.
We really feel for anyone whose finances remain impacted by the Coronavirus and we’re still here to help.
At the start of the Coronavirus outbreak, the Financial Conduct Authority issued guidance that lenders should temporarily stop reporting missed repayments for three months, for anyone on a Coronavirus payment plan or freeze. For customers that needed it, this was then extended by a further three months, so six months in total.
As no further guidance has been released from the Financial Conduct Authority, we’re required to start reporting missed repayments again when a customer pays anything less than their full monthly loan repayment – all lenders must do this on a monthly basis.
As a responsible lender, we’re following the Financial Conduct Authority’s guidance. Not reporting the change in customers’ circumstances to credit reference agencies would mean our customers’ credit files wouldn’t reflect their current financial situation, and this may result in people taking out more credit that they can’t afford to pay back.
We’re passionate about doing the right thing for our customers and their finances, and are constantly reviewing our approach, in line with the Financial Conduct Authority’s guidance. So, if anything changes, we’ll look to review things, to make sure we’re providing the very best support.
Was this helpful?