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12 million people in Britain will struggle to pay bills, watchdog says


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12 million people in Britain will struggle to pay bills, watchdog says

 

2020-10-22T033752Z_1_LYNXMPEG9L06J_RTROPTP_4_HEALTH-CORONAVIRUS-BRITAIN.JPG

A salesperson waits for a customer at Lewisham Market amid the outbreak of the coronavirus disease (COVID-19) in London, Britain October 13, 2020. REUTERS/Hannah McKay/Files

 

LONDON (Reuters) - Some 12 million people in Britain are likely to struggle with bills and loan repayments as the COVID-19 pandemic continues to wreak economic havoc, a Financial Conduct Authority survey tracking consumer financial resilience showed on Thursday.

 

The survey, conducted in July, found 12 million people in Britain had low financial resilience and also found that one-sixth of those people had become financially vulnerable since February, after lockdowns to control the virus slashed incomes and led to thousands of job cuts.

 

The survey, in which 7,000 people took part, showed that almost a third of adults have suffered a drop in income, while income for households has fallen by a quarter on average.

 

Black and Minority Ethnic respondents fared even worse, with 37% reporting a hit to their incomes.

 

More than a third of respondents, who already had low financial resilience and had a mortgage, said they were likely to fall behind on mortgage payments, while 42% of renters said they were worried about falling behind on their obligations.

 

36% of people feared falling behind on repayments linked to loans or credit cards.

 

"We want to remind consumers, especially those who are newly in financial difficulty that lenders are able to provide you with support," Sheldon Mills, the FCA's Interim Executive Director of Strategy and Competition said.

 

The regulator has put together a package of measures to ensure vulnerable households can access help after Oct. 31, when earlier COVID-19 relief initiatives such as loan and mortgage repayment breaks and the original Job Retention Scheme expire.

 

It has also encouraged borrowers to seek free advice on how to manage problem debts and urged banks and lenders to treat customers fairly, adding that firms should work with customers to provide support before they miss payments.

 

Options to negotiate new repayment plans, suspend, reduce, waive or cancel any further interest or charges will be open to customers, the FCA said.

 

However, banks needed to be transparent about how such actions could result in increased costs over the long term and how such support could impact personal credit profiles.

 

(Reporting By Sinead Cruise. Editing by Jane Merriman)

 

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-- © Copyright Reuters 2020-10-22
 
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You are totally off topic with your obvious dislike of the UK populace.  Are there no folk in your country having financial problems because the virus....?

in this case it cant be said it was self inflicted, it was inflicted by their governments, and while you could say the voters got what that they deserved, thats not really the case, it

So, 12 million not so smart people that put themselves in too deep in loans as well as too high bills. Let´s just hope that´s not the smartest part of the country´s population. If so, there is no poss

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So, 12 million not so smart people that put themselves in too deep in loans as well as too high bills. Let´s just hope that´s not the smartest part of the country´s population. If so, there is no possible way to save the sinking ship. At least could have stayed in EU and given their citizens the possibility of free movements and work in other member states.

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14 minutes ago, transam said:

You are totally off topic with your obvious dislike of the UK populace. 

Are there no folk in your country having financial problems because the virus....?

Same could be said for any population. I think he's one of yours.

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2 minutes ago, EVENKEEL said:

Same could be said for any population. I think he's one of yours.

Of course...

He is Swedish, he told us so....😟

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25 minutes ago, transam said:

You are totally off topic with your obvious dislike of the UK populace. 

Are there no folk in your country having financial problems because the virus....?

Yes, it is! Have no sympathy for them either.

How am I off topic? You do not decide which opinion people on this forum shall have about the news and threads in this forum.

I am posting my opinion about the 12 million in the news that are struggling. NOT off topic. Stop with your nonsense and hard tries to decide over other members.

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Just now, Surelynot said:

It has been claimed (no links) that had our pensions been managed as well as the Dutch managed theirs, the pensions would be 70% greater than they are as of today???

That would still s**k!

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