credit

More than nine million adults across the UK were declined for credit in just 12 months, new research suggests. One in 20 were declined three times or more. Young people, Londoners and parents or guardians the most likely to be turned down. Money and Pensions Service says people should “stop, take a breath and reassess” before making any more applications if they’re declined. A...

In recent years, there has been a rapid increase globally in the use of Buy Now Pay Later (BNPL) products. In the UK, it’s estimated that 10.1 million people have used BNPL in the past 12 months. As part of the UK Strategy for Financial Wellbeing, the Money and Pension Service (MaPS) has commissioned the Behavioural Insights Team (BIT) to explore how consumers use and manage their credit...

Over 12 million people are now borrowing money for food or essential bills and half of them are doing so for the first time in their lives, new research suggests. Millions borrowing to pay for food, utility bills and rent or mortgage payments, with half of those doing so for the first time. One in five think they will need credit to get through the next three months. The Money and...

Many people who need help with their money are unaware of, unable or unwilling to receive support. Evidence suggests that people can be effectively reached and engaged with money help through other familiar channels and systems. Our Savings and Credit Pathfinders Programme aimed to design and explore ways to do this in practice and at scale, funding twelve projects across three...

Following the publication of the Woolard Review: A review of change and innovation in the unsecured credit market, MaPS Chief Executive Caroline Siarkiewicz commented: “The proposals to bring Buy Now Pay Later under regulatory scrutiny would provide further protection for people to avoid the potentially harmful consequences of this form of borrowing which can result in people spiralling...

The Money and Pensions Service welcomes the opportunity to provide evidence and views to this Call for Input into change and innovation in the unsecured credit market. As an organisation supporting people to make the most of their money and pensions, we have focused our responses on the questions focused on the areas of consumer benefit and potential for consumer detriment from the unsecured...

Caroline Siarkiewicz, director and debt advice expert at the Single Financial Guidance Body, commented: “The news of the WageDay Advance collapse will cause uncertainty for their customers. While today’s news may tempt some to stop their repayments, it is important they carry on as normal, because customers who have entered into a loan agreement must fulfil it. “When 11.5 million UK...

In 2016, the Financial Advice Market Review (FAMR) developed initial high-level financial Rules of Thumb, in areas such as ‘cleaning up’ your finances, managing borrowing, saving regularly and focussing on your pension. The Money Advice Service (MAS) has been taking this work forward by developing a new Rule of Thumb to help young adults (18 to 24) use credit successfully. Previous MAS...

One in five UK adults declined for credit in a year

Buy Now Pay Later: a review of the market, risks and trends, consumer understanding, impact and outcomes

One in five people now borrowing to pay for food and other essential bills, with half doing so for the first time

The Savings and Credit Pathfinders Programme – evaluation report

Media comment: Buy Now Pay Later/Woolard Review

Consultation response | Review into change and innovation in the unsecured credit market – the Woolard Review

Media comment: Single Financial Guidance Body responds to the collapse of WageDay Advance

Developing financial Rule of Thumb to support young people using credit

Managing money in uncertain times