The FCA have seen a 15% increase in those deemed as ‘vulnerable’ to almost 28 million vulnerable adults. It will take time for these individuals to find their feet. So it is still relevant for businesses and lenders to be considering long term plans in helping this growing group of customers.
COVID-19’s Economic Impact
At the start of the outbreak, financial services firms began offering a series of government-backed support measures. These included furlough, loans for businesses and repayment holidays for consumers. They were eagerly taken up by millions. Many of these individuals and businesses will also have taken the support offered by financial services firms for business loans and payment holidays such as:
- Small and micro businesses taking up the Bounce Back Loan Scheme (BBLS)
- £Billions lent under the Coronavirus Business Interruption Loan Scheme (CBILS)
- Payment deferrals agreed on credit cards
- Millions of homeowners took out mortgage payment holidays
Employment figures have made a tentative increase: In the last quarter: 0.1 percentage points higher than the last quarter but still 1.85 lower than before the pandemic. So things are still fragile. Unemployment and further financial hardship will continue to impact both consumers and businesses for some time. So what can we do?
Smart businesses will want to be sure that they will pass this test or they may find themselves suffering alongside their customers.
So what steps can they take to ensure they have the capacity, capabilities, and expertise in place to meet these dual requirements?
Where to now?
This can be an overwhelming question. If you are struggling to answer any of these questions, then EQ can help. We provide full end-to-end support in dealing with customers in financial difficulties. From the early assessment of customers’ risk through debt administration, loan rescheduling, and collections.