Debt collectors want to help chase unpaid Covid loans

Industry News | 08/01/21

Debt collectors have argued that they could save taxpayers huge sums if they are given a bigger role collecting unpaid coronavirus loans.

Since the start of the pandemic businesses have borrowed billions of pounds from banks such as Lloyds and NatWest under the Bounce Back loans scheme. Government guarantees mean taxpayers will cover all of a lender’s losses if a borrower defaults.

Bank chiefs had originally warned ministers that the fast application process for the loans – which Chancellor Rishi Sunak said could be done “in the time it takes to have lunch” – puts the scheme at high risk of fraud.

Source: The Telegraph