You are here: Home - Saving & Banking - News -

Banks move to tackle over-indebtedness

Written by:

Consumers could benefit from a joint campaign between a number of high street banks and Callcredit, a credit reference agency, to launch a responsible lending initiative dealing with consumer indebtedness.

HBOS, HSBC, Lloyds TSB and RBS are all involved in the programme to improve lenders’ understanding of their customers’ indebtedness and ability to make repayments. They will share application information on income and current accounts with Callcredit. This will allow assessment of affordability by measuring a consumer’s ability to meet their credit commitments.

Callcredit will then be able to produce an indebtedness report for each of the participant’s customers. The banks will also have access to reports on customers who are severely over-indebted and need advice; those whose financial positions should be closely monitored; and daily alerts of customers whose changing levels of indebtedness might be a cause for concern.

Managing director of Callcredit, John McAndrew, said: “The Government wants more customer protection for borrowers and the lenders want to provide a better service to their customers. We are delighted to have been able to help the industry achieve this. It is true that only a small percentage of customers are over-indebted and our initiative provides additional opportunities to offer these customers appropriate advice and support.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Pensioners work part-time to bridge savings gap

The number of part-time pensioners in the UK is set to rapidly increase to one in five of those planning...