PRA Group and StepChange Collaborate to Strengthen Financial Inclusion in the UK
In a significant move towards enhancing financial inclusion and consumer resilience in the UK, PRA Group, Inc. (Nasdaq: PRAA), a leading player in the acquisition and collection of non-performing loans, has partnered with StepChange, the nation's largest debt advice charity. This collaboration was recently underscored at a roundtable debate hosted in the House of Lords, highlighting the pressing challenges faced by individuals struggling with debt.
The event, presided over by The Viscount Chandos and featuring notable attendees including Chris Leslie, the CEO of Credit Services Association and former Shadow Chancellor, took place on February 4, 2025, at the Palace of Westminster in London. Together, these key stakeholders, which included representatives from banks, credit monitoring agencies, non-profits, regulatory bodies, and government entities, convened to address the vital issues surrounding financial inclusion for UK households.
The roundtable discussion primarily focused on the recommendations from the Financial Conduct Authority's (FCA) Credit Information Market Study. This study shed light on the existing credit reporting framework, revealing its inconsistency in delivering appropriate outcomes for consumers in financial distress. Data collected by StepChange indicates that potential borrowers often hesitate to seek assistance due to concerns over their credit scores, further aggravating their situations.
"We are thrilled to collaborate with StepChange and the financial community to provide support for our customers who are anxious about their credit ratings," stated Martin Sjölund, President of PRA Group Europe. He emphasized the opportunity presented by this partnership to initiate meaningful change for clients facing financial exclusions. Meanwhile, Peter Tutton, Head of Policy at StepChange, echoed this sentiment, emphasizing the real anxiety many clients experience regarding their credit scores, which delays their seeking timely debt advice.
The gathering reaffirmed that addressing problems varied between groups and underscored the urgent need for structural changes in how credit information is reported. Effective solutions that enable individuals in debt repayment to reengage with the financial ecosystem must be prioritized to allow access to affordable credit options.
Both PRA Group and StepChange have been actively focusing on strategies tailored to consumer needs, particularly in light of the increasing cost-of-living pressures. Their collaborative efforts have already demonstrated positive impacts on consumers by exploring alternative credit scoring practices that reduce the barriers to seeking help.
PRA Group’s extensive network and resources, combined with StepChange’s deep understanding of debt issues, form a robust foundation for advancing financial standards and stabilizing households across the UK. This partnership signals a proactive response to the obstacles that many face in achieving financial stability and security.
As the initiative continues, both organizations remain committed to campaigning for changes that will not only alleviate debt stresses but also foster a more inclusive financial landscape. With increasing acknowledgment of the relationship between credit scores and access to financial support, there exists a crucial opportunity for systemic change, which the PRA Group-StepChange partnership is well-positioned to spearhead.
About PRA Group
PRA Group, Inc. is recognized globally as a leader in the acquisition and management of non-performing loans, with a mission to facilitate the financial service expansion for consumers across the Americas, Europe, and Australia. The company prioritizes customer collaboration to achieve favorable debt resolutions.
About StepChange
Founded in 1993, StepChange Debt Charity assists over 600,000 individuals annually in navigating their debt management through its dedicated services and advocacy. The charity is pivotal in seeking reforms within the financial sector to alleviate the burdens and stigma often associated with debt management.
The event, presided over by The Viscount Chandos and featuring notable attendees including Chris Leslie, the CEO of Credit Services Association and former Shadow Chancellor, took place on February 4, 2025, at the Palace of Westminster in London. Together, these key stakeholders, which included representatives from banks, credit monitoring agencies, non-profits, regulatory bodies, and government entities, convened to address the vital issues surrounding financial inclusion for UK households.
The roundtable discussion primarily focused on the recommendations from the Financial Conduct Authority's (FCA) Credit Information Market Study. This study shed light on the existing credit reporting framework, revealing its inconsistency in delivering appropriate outcomes for consumers in financial distress. Data collected by StepChange indicates that potential borrowers often hesitate to seek assistance due to concerns over their credit scores, further aggravating their situations.
"We are thrilled to collaborate with StepChange and the financial community to provide support for our customers who are anxious about their credit ratings," stated Martin Sjölund, President of PRA Group Europe. He emphasized the opportunity presented by this partnership to initiate meaningful change for clients facing financial exclusions. Meanwhile, Peter Tutton, Head of Policy at StepChange, echoed this sentiment, emphasizing the real anxiety many clients experience regarding their credit scores, which delays their seeking timely debt advice.
The gathering reaffirmed that addressing problems varied between groups and underscored the urgent need for structural changes in how credit information is reported. Effective solutions that enable individuals in debt repayment to reengage with the financial ecosystem must be prioritized to allow access to affordable credit options.
Both PRA Group and StepChange have been actively focusing on strategies tailored to consumer needs, particularly in light of the increasing cost-of-living pressures. Their collaborative efforts have already demonstrated positive impacts on consumers by exploring alternative credit scoring practices that reduce the barriers to seeking help.
PRA Group’s extensive network and resources, combined with StepChange’s deep understanding of debt issues, form a robust foundation for advancing financial standards and stabilizing households across the UK. This partnership signals a proactive response to the obstacles that many face in achieving financial stability and security.
As the initiative continues, both organizations remain committed to campaigning for changes that will not only alleviate debt stresses but also foster a more inclusive financial landscape. With increasing acknowledgment of the relationship between credit scores and access to financial support, there exists a crucial opportunity for systemic change, which the PRA Group-StepChange partnership is well-positioned to spearhead.
About PRA Group
PRA Group, Inc. is recognized globally as a leader in the acquisition and management of non-performing loans, with a mission to facilitate the financial service expansion for consumers across the Americas, Europe, and Australia. The company prioritizes customer collaboration to achieve favorable debt resolutions.
About StepChange
Founded in 1993, StepChange Debt Charity assists over 600,000 individuals annually in navigating their debt management through its dedicated services and advocacy. The charity is pivotal in seeking reforms within the financial sector to alleviate the burdens and stigma often associated with debt management.
Topics Policy & Public Interest）
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