Comment on energy cap rise – role of lenders

“With record high inflation, wage stagnation and exponential rise in the cost of living, this latest price cap rise will be the straw that breaks the camel’s back for many consumers. Already, we know that huge numbers are borrowing to survive, and this number is only set to grow in coming months.

“One of the biggest concerns is near-prime borrowers whose thin credit profiles may mean they’re turned away from mainstream lenders and forced to use high-cost, short-term alternatives instead, and consequently find themselves in near-inescapable debt spirals. We cannot let these people be the victims of this crisis. Now is the moment that lenders must step up to protect borrowers, and offer transparent, fair, inclusive, and affordable financial services to those who need them most.”

Neil Kadagathur, CEO and Co-Founder, Creditspring