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, according to independent research commissioned by credit reference company,
Callcredit Information Group.
Sixty nine per cent of adults suffering from financial pressures over the past two years admit to failing to speak with their bank or building society about their financial difficulties, and 42 per cent have not come completely clean about their financial situation when problems arise.
The results reveal that two thirds of British adults (65 per cent) have experienced some form of sudden change in their finances during the last two years, particularly those with children (74 per cent).
Only eight per cent contacted Citizens Advice or a debt charity when they first received the bad news - the same percentage as those who contacted their own bank or building society - leaving the vast majority of lenders ignorant of their possible debt stress and unable to offer support.
Of those that did contact their bank or building society in the long term, eight per cent admitted they were not completely honest with them about their financial situation.
The results highlight that 24 per cent of people who said they had suffered an unexpected financial shock over the past two years had seen their income suffer - with six per cent taking a pay cut, nine per cent seeing a cut in working hours and nine per cent 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."
"It's imperative that lenders help customers identify any issues as soon as possible in order to support them in managing their finances.”
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