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Bloomberg
Discussions among UK banks to establish a shared debt collector for unpaid payments on Covid loans have stalled, the Financial Times reported, citing people familiar with the
discussions.
Lobbying group UK Finance was leading talks on a shared entity but several of the UK’s biggest banks such as HSBC Holdings Plc and Lloyds Banking Group Plc have soured on the idea,
according to the report.
Large banks were disappointed by the scope of the shared utility, according to report. The lenders were initially interested as a means to shield themselves from poor public relations for pursuing repayment from small businesses that are struggling.
Bank executives also want to show sufficient effort to collect the loans before
resorting to the 100% guarantee on losses from the UK government, according to the Financial Times.