After debt charity StepChange said £370m of rent arrears have been built up through the pandemic, PayPoint is backing the National Residential Landlords Association’s (NRLA) request to supply further support for the financially vulnerable.
The NRLA wants interest-free, government guaranteed hardship loans for tenants. Digital payments solutions expert, PayPoint, believes this is an important step but if this support is not forthcoming it is suggesting that there is another solution for those who have fallen behind on bills since the first UK lockdown began in March 2020. PayPoint is urging service providers to offer flexible payment arrangements to consumers to ease the burden for all.
Danny Vant, Client Services Director of PayPoint, commented: “There is a perfect storm of factors likely to put some tenants at a severe disadvantage in the next few months. The furlough scheme will not be extended despite lockdown measures remaining in place for a month longer than planned, yet the ban on evictions has come to an end. The application deadline for payment holidays has also now passed. These circumstances will hit every individual differently and, with many already struggling, could push them into real, long-lasting financial problems. The best way for organisations to help tenants through this period is by offering tailored solutions and clear, on-going communication.”
PayPoint’s MultiPay allows businesses to collect due or arrears payments with care, engaging with customers sensitively and responsibly. Importantly, it provides customers with payment flexibility, putting them in control whilst improving cashflow for the business awaiting payment. This can also minimise unnecessary payment chasing, which is a key burden on call centres. These tools are applicable to charities, social housing sectors, landlords, and local councils.
Danny Vant concluded: “By working with customers, considering their individual financial challenges and providing flexible payment structures, businesses will help them navigate the difficult year ahead and the end-result will be mutually beneficial.”
PayPoint is attending the Social Housing Strategy Forum on 1 and 2 July to further discuss the benefits that PayPoint’s digital payment solutions can provide to landlords, social housing organisations and renters.