CSFI

CSFI
But that is not to suggest that all is well. New market entrants are finding that it is
not uncommon for credit rating companies to misrepresent credit histories of people,
notably those with complex records. Inconsistent reporting, mislabelling defaults
where debts have been settled, and duplication of debt from the same source are
all too common. For this reason, some new lenders are still carrying out manual
assessments in order to reach a decision. This is both costly and time consuming.
Box 8: Sheffield Money
“In August 2015, the City of Sheffield launched a pioneering venture
aiming to address the problem of unaffordable credit and growing
indebtedness. A not-for-profit organisation, based in the city centre,
was set up to tackle restricted and unfair access to finance.
“Sheffield Money offers loans, savings accounts, current accounts, and
lower-cost white goods and appliances, as well as money and debt
advice, all under the Sheffield Money brand. The organisation operates
as a broker for existing suppliers with shared objectives (e.g. credit
unions, responsible finance providers and the advice services). An
essential objective is to encourage financial inclusion and awareness.
“By offering alternatives to non-standard credit, it hopes to improve
and reduce debt crisis cycles, as well as help customers start saving
regularly to create a financial buffer. A money adviser is available in
the branch to help people with ‘all things finance’ - such as budgeting,
savings, benefit eligibility, or improving credit scores to ease access
to credit. It is written into our mission statement that we will never
recommend a loan to someone who cannot afford it. But we will always
try to offer an alternative if possible, for example, signposting using our
strong links with local advice services.
“With 10,000 hits on our website and almost 2,000 applications for
quotes and loans, it’s clear that there is demand for the service. These
inquiries and applications have come from all over the Sheffield City
region and we hope to be able to expand the model to other cities.”
Rob Shearing,
CEO Finance for Sheffield – Sheffield Money
At the local level, there are a number of promising initiatives. These include
Sheffield Money (see Box 8), the city’s new one-stop shop. This provides joinedup
money and debt advice – together with access to loans (from credit unions and
responsible finance providers), credit for white goods, and savings and bank accounts
CSFI 73 LEADENHALL MARKET, LONDON EC3V 1LT Tel: 020 7621 1056 E-mail: info@csfi.org Web: www.csfi.org 27