Citizens Advice: Lenders should be 'sympathetic'

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Citizens Advice: Lenders should be 'sympathetic'

Tue 10th Jul 2007

Advice service Citizens Advice believes that financial providers should adopt a more sympathetic attitude to those people struggling to meet monthly repayments.

The group says that many lenders do not speak to their clients even though clients ring them up.

She said: "We think lenders should be more sympathetic to people struggling with their payments and that they should be able to negotiate."

Checking the financial feasibility of clients should also be an imperative for loan providers, she added.

Citizens Advice said that the majority of clients took on a loan having considered the financial feasibility of the decision.

However, the spokesperson said: "But what we find is that life events change their circumstances and it can happen very quickly; a divorce, illness, loss of job means that a £300 payment a month suddenly becomes quite a burden."

Debt is weighing more heavily upon consumers than in previous years, new research shows, with a PricewaterhouseCoopers suggesting in a recent article that paying borrowed money now takes up 19 per cent of the average UK household's disposable income.

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