February 16th, 2021.
High street banks are set to handle overdue Bounce Back Loan debt repayments themselves, abandoning plans for an agency to deal with emergency Covid-19 loans.The banking industry has decided that a collection agency would merely complicate the business of dealing with Bounce Back Loan debt that has gone bad, according to the Times.
The Government itself estimates that nearly two thirds of Bounce Back Loans may never be repaid, costing the Treasury £26bn.
UK Finance, the banking trade body, ran a feasibility study last year on creating a vehicle which would oversee debt collection on behalf of lenders who took part in the Bounce Back Loan scheme.
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