A coalition of lenders, fintechs and charities, headed up by Evlo, have launched a campaign calling for reforms that will mean rental payments count towards credit scores.
The ‘Financial Freedom for Everyone’ campaign aims to help the UK’s 10 million households that rent their homes access credit for greater financial inclusion and equality for renters.
Jason Wassell, CEO of the Consumer Credit Trade Association (CCTA) and MALG Board Member, said:
“For too long, renters have been disadvantaged simply because their most significant monthly expense isn’t usually recognised. With the Treasury reviewing the Consumer Credit Act and preparing a National Financial Inclusion Strategy, now is the time to close that gap.
“We do not underestimate the complexity of this issue. It is not just about adding data to files; it is about building on existing work in this area, understanding where we might see unintended consequences. Just as importantly it is about how lenders themselves will use that information, or be allowed to use that information.”
Shiona Crichton, CEO of Moneyline, added:
“We believe that rental payment history being available in credit information systems is critical for financial inclusion and for equality of renters to be achieved. Positive payment history is key in assessing the credit worthiness of a customer and with the growing number of renters in the UK it is such a large gap in the current system.”
Find out more about the campaign here.