Paul Went, Managing Director for Shawbrook’s Consumer Division, said: “The main reason that many low-income families fall into extreme indebtedness is mainly due to not being fully aware of what they’re getting into.
“If lenders, and particularly credit card providers, were more upfront and transparent in relation to their propositions, then maybe those within low-income households would be able to properly assess these offerings before applying for a product and then subsequently entering into an agreement with an absurdly high APR.
“The report from the Resolution Foundation highlights the need for lenders to take more responsibility regarding educating consumers, helping them make the correct decisions before jumping in on a deal that fundamentally may not be right for them or their situation.
“When it comes to personal loans, we believe in being transparent and fair with everyone that applies by providing a clear picture of the rate they’ll get, right from the outset. Although this report is concerning in several areas, it does highlight an area of improvement and increased responsibility for lenders that we fully support.”
This comment is in response to research carried out by the Resolution Foundation on 15/1/20: https://www.resolutionfoundation.org/publications/an-outstanding-balance/