Financial community comes together on
practical ways to support people in debt
NORFOLK,
Va., Feb. 20, 2025 /PRNewswire/ -- PRA Group,
Inc. (Nasdaq: PRAA), a global leader in acquiring and
collecting nonperforming loans, and StepChange, the UK's largest
debt advice charity, recently partnered to highlight issues
impacting people in debt in the United
Kingdom. On behalf of the two organizations, The Viscount
Chandos hosted a key roundtable debate in the House of Lords
chaired by Credit Services Association (CSA) CEO and former Shadow Chancellor
Chris Leslie.
Stakeholders representing banks, credit monitoring agencies,
not-for-profits, regulatory agencies and the government gathered on
4 Feb. 2025 at the Palace of
Westminster in London to draw
attention to the importance of financial inclusion and building the
resilience of UK households. The discussion highlighted how changes
to credit scoring could reduce barriers for consumers to seek help
and improve access to affordable financing.
In recent years, PRA Group UK and StepChange Debt Charity
have partnered on consumer-focused strategies to address
cost-of-living trends, how credit scores impact consumers and
practical responses to help support people in debt.
The recent gathering focused on findings from the Financial
Conduct Authority's (FCA) Credit Information Market Study. The FCA,
responsible for regulating financial service firms and financial
markets in the UK, found the current credit reporting framework may
not always deliver consistent or appropriate outcomes for
consumers. This is supported by StepChange's research, which shows
concerns about credit scores delay people from seeking help at
every stage of financial difficulty. PRA Group UK's research also
shows that people recovering from financial difficulty can remain
financially excluded for too long.
"We are delighted to be working with StepChange and the UK
financial community to support our customers who are concerned
about their credit score," said Martin Sjölund, president of PRA
Group Europe. "There is a real opportunity to make a difference to
help our customers who are financially excluded."
Peter Tutton, head of policy at
StepChange Debt Charity, said, "For many of our clients, worries
about credit scores are front of mind, and our client research
tells us that a fifth of StepChange clients delay seeking debt
advice because of fears about how they may be affected. The FCA has
recognized that change is needed to support consumers and our
partnership with PRA Group on this topic seeks to improve client
outcomes."
As part of the Credit Information Market Study, the FCA provided
a number of recommendations to address problems faced by
borrowers experiencing financial difficulty. Partners involved in
the roundtable gathered to advance these recommendations with
practical credit reporting solutions. Those solutions could support
greater financial inclusion in the years to come by enabling people
who are in the process of paying off their debt to re-enter the
financial ecosystem and access affordable credit.
About PRA Group
As a global leader in acquiring and
collecting nonperforming loans, PRA Group, Inc. returns capital to
banks and other creditors to help expand financial services for
consumers in the Americas, Europe
and Australia. With thousands of
employees worldwide, PRA Group companies collaborate with customers
to help them resolve their debt. For more information, please visit
www.pragroup.com.
About StepChange
StepChange Debt Charity is the UK's
largest debt advice charity, helping hundreds of thousands of
people every year to deal with their debts. Founded in 1993,
StepChange supports people experiencing debt problems through
telephone and online services, and campaigns for change to reduce
the harm and stigma associated with debt.
News Media Contact:
Elizabeth
Kersey
Senior Vice President, Communications and Public Policy
(757) 641-0558
Elizabeth.Kersey@PRAGroup.com
Investor Contact:
Najim Mostamand, CFA
Vice President, Investor Relations
(757) 431-7913
IR@PRAGroup.com
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