Both lending and debt collection have been disrupted over the last month and previously reliable models and strategies will be tested going forward. Hundreds of thousands of customers are on reduced salaries through the Government’s furlough scheme. Many have lost their jobs. Millions have taken payment ‘holidays’ or reduced repayments that will soon have to be reckoned. Three months may not be long enough for customers to get their finances back on track.
Some sectors have been hit much harder and are likely to take much longer than three months to recover their resilience. This is particularly the case for retail, hospitality, arts and entertainment where job losses are still increasing. There are also regional variations, for example, holiday destinations like Cornwall that rely heavily on the summer months for the majority of their annual income.