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PayPlan calls for more brokers to aid credit impaired

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Debt advice provider PayPlan is calling on mortgage brokers to do more to help consumers who have been declined credit.

The firm says debt consolidation mortgage borrowers turned down for affordability reasons should be signposted to independent debt advice.

PayPlan cites Financial Conduct Authority research that 52 per cent of consumers declined a loan were at least still in the same financial position 12 months later.

The research adds that only one in five had sought professional debt counselling services.

PayPlan head of partnerships Andrew Alder says: “Intermediaries are well placed to identify the signs of individuals struggling with money problems and should provide awareness of where they can get free independent debt advice when unable to secure the lending needed to consolidate their unsecured debts.

“We regularly see these types of consumers contacting PayPlan months after they have been declined for this type of lending.

“If the intermediary and debt advice industry had closer links, it could enable the prevention of debt problems before a consumer hits crisis point.”

Alder adds that lenders point customers to debt advice providers where necessary, and brokers should follow suit.

 

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