Responding to Covid-19 Financial Pressures.
By Group Chief Executive, Lisa Pickard- April 2020
Five Lamps and Conduit is a different kind of lender. Through our loan products and support services, our aim is to support people, many of whom don’t have access to mainstream credit, to be financial included.
We know that Covid-19 is having an immediate financial impact on many of our customers. It is important that we continue to support our customers during this challenging time to prevent them falling into unnecessary debt and having their credit history and scores affected. This is important if a customer wants a loan in the future.
What are we doing at Conduit?
We are Open for Business & Lending
Whilst many short-term lenders are not lending; we are. If you need a loan or you know someone who needs a loan, please contact us before you consider a high cost credit loan. We may be able to help.
We are supporting existing customers.
Like the Financial Conduct Authority (FCA) we have been working at a pace to introduce temporary measures for our customers affected by the coronavirus. Last week the FCA confirmed the expectations for short term credit lenders. We are pleased to confirm that we were already introducing these measures and we are as a result, fully compliant with the latest advice.
If customers are affected by the coronavirus and having difficulties maintaining their loan payments, it is important that they do not stop paying as this will affect their credit score and history. We are concerned that some customers will think the FCA guidance is automatic. It is not.
To support, we have developed an online form, for customers to supply details. We can also do this through our dedicated contact centre. One of our specialist advisors will make contact within 48 hours. Where customers are affected, we are able to agree a one-month payment freeze – this is a total freeze on the full payment including interest and our customers will not be charged a fee or additional interest for this.
We are also supporting customers by reducing loan payments and extending loan terms to make the payments more affordable. This is proving to be a better solution for those whose income has been affected.
All of these have to be approved. By getting approval and sticking to the agreed plan, our customers credit history will not be affected.
These arrangements are only for customers directly affected by coronavirus. We will accept requests for three months, until 24th July 2020. We cannot back date requests.
For customers struggling to maintain their loans who are not directly affected by the pandemic, our usual forbearance processes apply. We urge customers to contact us to discuss and resolve.
Part of the Conduit mission is to disrupt high cost credit loans many of which charge 1000% APR. By taking a loan with us, a customer can save on average £230 compared to some other lends. *Full comparison can be found by clicking here.
Significant progress has been made in recent years and we are determined to do what we can to stop the coronavirus undoing all of the good work.