4. Stories about good consumer support outcomes
We heard positive stories from some consumers about their experience dealing with financial services providers and how they are managing debts and costs better as a result. These stories are illustrative only, and we highlight them to encourage other consumers to seek support and to demonstrate to firms the benefits of proactive support and appropriate forbearance.
Some consumers told us they were pleased with how they were treated when they contacted their lender. Some arranged new payment plans to enable them to pay a reduced amount for a longer period, while some were referred to not-for-profit debt advisers.
"I contacted my loan company to ask for a smaller payment amount monthly, and it was a really easy and pleasant experience. My adviser was exceptionally approachable and helpful." (Female, 35-44)
"I was worrying about my increasing credit card debt and was thinking about remortgaging, but I spoke to an adviser who talked me through options and I realised I could pay my debts…without increasing my mortgage." (Female, 35-44)
"With my credit card I've been quite honest and upfront with them, you know, rang them up to tell them my situation… I know it needs paying, but at the minute I can't do that. It gives you some breathing space. I did get some advice as well, and I've got a budget plan off a firm called Step Change." (Male, 55-64)
"My husband had to speak to financial companies to set up payment plans for a couple of credit cards… And [high-street bank] he found were from the very beginning really, really helpful, very understanding. And were the first to sort of just say, right, that's fine. We'll put payments on hold; we'll make arrangements for a payment plan, when it's possible for you." (Male, 45-54)
Some consumers noticed that providers were proactively reducing costs or helping consumers to do so. Some consumers were familiar with the concept of ‘cost-of-living support’, such as an interest-free overdraft.
"I was delighted to discover my home insurance was reduced this year from £125 to £97 because of the cost-of-living crisis." (Female, 45-54)
"My mortgage company wrote to me lowering my mortgage by nearly £20 a month, and my credit card company wrote to me to switch debt to save interest. I find people I deal with very helpful." (Female, 45-54)
"I'm overdrawn twice this month already. I've negotiated with my bank that they will give me an interest-free overdraft up to £500… They did say in the offer to seriously consider, you know, because otherwise it's easy to go into debt… They called it the cost-of-living support. Oh, that was their title on the letter, I think. So, it was obviously a reaction to people's problems and finding a way to help them, which I found very, very good for a bank to be doing it." (Male, 75-84)
We heard stories from some consumers of significant savings made when they contacted their provider to cancel or reduce the level of cover on policies. We also heard of providers waiving the cancellation charge.
"I did cancel insurances. They were very helpful. They did try to give me a reduced rate. But what the problem was, no matter how I worked it out, I still was like thinking the point where it'd all go out and there was no food, so I had to quit it. The lady was lovely, and she waived the charge. She said we've had loads of customers ringing and doing the same. I understand that you're all stuck." (Female, 45-54)
"The home insurance, at one stage I thought, I'm going to knock that on the head, I can't afford that… There was an insurance brokers in town and I said, look, this is the situation. They managed to get me…around £14 a month. I mean that doesn't sound a lot, but when you've only got a budget of £340 a month, it's all relative." (Male, 55-64)
