Independent research commissioned by Callcredit Information Group has revealed that British consumers are storing up considerable problems for themselves and lenders by failing to keep their bank or building society informed about their financial woes.
Nearly 70% of people who experience a sudden, significant impact on their finances never contact their bank or building society about their financial difficulties
Key findings of the report are:
* 69% of people suffering from financial pressures in the past two years have never spoken to their bank or building society about their difficulties
* 38% of adults do nothing to adjust to their changed circumstances when they first come under financial pressure
* The 31% that do eventually speak to their bank or building society take on average two months to do so
* 42% of British people who experienced unexpected financial problems did not come clean about their financial situation
* Nearly two thirds (65%) of British adults have experienced some form of sudden change in their finances during the past two years
The results highlight that 24% of people who said they had suffered an unexpected financial shock over the past two years had seen their income suffer - with 6% taking a pay cut, 9% seeing a cut in working hours and 9% losing their job.
"These figures are extremely worrying," said Graham Lund, managing director of Callcredit. "What's particularly concerning is the number of people who fail to make their bank aware of sudden changes in their financial situation - and those that do get in touch aren't always completely honest.
“It's therefore extremely important that financial service providers use information and tools available to proactively monitor any changes in their consumers' financial situation and have sight of the bigger picture."
