Furloughed workers three times as likely to default on a payment

Which? found that 13% of those furloughed, put on enforced leave or reduced hours due to the coronavirus crisis, have defaulted on at least one payment, compared with 4% of those still working as normal.

Between 3 million and 5 million workers are still thought to be having all or some of their wages paid through the Treasury-backed scheme. Which? said 6% of workers on the scheme reported that they had missed a loan or credit card payment in the previous four weeks.

Richard Piggin, the head of campaigns at Which?, said: “Despite extensive action being taken by the government and the banking industry, it’s very worrying that people currently on the furlough scheme have reported experiencing much higher levels of financial difficulty than those who are working as normal”

IE Hub can help you actively engage with your furloughed customers to help them through the crisis.

As furlough begins to taper, and FCA led forbearance measures come to an end, we expect this to have a knock-on effect to customers. Many are now predicting a “Debt Tsunami” to follow with the first big impact to be seen as we reach Q4.

IE Hub’s customer affordability calculator can help you manage this incoming contact and get the right outcome for customers. Customers can self-serve and deliver their I&E to you and their other creditors, quickly and securely so the right actions can be agreed without a long telephone call, saving you time and money and supporting their mental wellbeing at the same time.

Joining IE Hub is quick and easy and you can benefit from a free 3 month trial (IE Hub is always free for customers). Also, we can have your organisation up and running in 2 working days. Moreover, we can provide training and run campaigns to help customers self-serve and lessen the impact on your operation.

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