AA Loans Calls For Changes To The Loan Industry
The market for both secured loans and unsecured loan in the UK has become a particularly difficult one for many individuals since the onset of the credit crunch and banking crisis. Consumers are currently divided between those who are able to be accepted for as new loan and those who can’t get finance, or can only get a loan by paying a particularly high premium.
This was the view of Mark Huggins, director of AA Financial Services, who was speaking yesterday (Thursday 13th May) at the annual credit summit held by Credit Today.
Mr Huggins said that change was needed within the personal loan and finance industry in order to meet the needs and demands of consumers who are looking for a new loan at reasonable rates.
Currently there is a high level of polarisation within the loan industry, where only those individuals with a perfect credit history are able to get the finance they require and anyone who does not meet lenders strict criteria are likely to be declined for a loan, or charged particularly high interest rates.
He also called on the government to introduce financial education into schools as a part of the national curriculum, in order to prevent young people falling into the trap of getting themselves into bad debt through personal loans and credit cards.
Mr Huggins also said that loan companies needed to work together to find realistic and affordable solutions for anyone who needs a new loan, as currently the demand for credit far outstrips the supply of loan products available from lenders.
“Although we must all take a responsible approach to lending, that doesn’t mean becoming so risk averse that we simply exclude millions of creditworthy consumers.”
“I would welcome commitment from today’s summit that aimed to bring our industry together to find a common solution that would once again bring credit within the reach of families who are struggling to balance their financial options.”
