People who are struggling financially should be privy to a more understanding ear by their creditors suggests the CAB.
It has been reported that the vast majority of UK lending institutions do not pay close enough attention to their clients “cries for help” with some even going as far as to completely ignore any attempts to make contact.
The CAB has suggested that lenders owe their customers a degree of sympathy due to the fact that in 70% of cases, consumer financial difficulties are said to stem from irresponsible lending and/or haphazard screening when it comes to prospective loan applicants.
In addition, certain consumer groups are said to be putting pressure on lending institutions, in an attempt to convince creditors to cut people in uncontrollable financial situations, a little more slack. As it currently stands, consumers who default on credit agreements are all tarred with the same brush. The current system does not separate those people who want to pay but cannot due to circumstance, from those who simply refuse to pay.
The CAB has reported that its suggestions have been welcomed by some of the larger credit lenders and it is hopeful that a solution will be devised in order to accurately identify and protect such borrowers.
