Fair4All Finance and ClearScore partner on debt consolidation technology

By Gloria Methri

Fair4All Finance has partnered with ClearScore to develop debt consolidation loan technology that will boost access to affordable credit for people in financially vulnerable circumstances.

ClearScore’s proposition ‘Clearer’ allows direct settlement of consumer debts, unlike most other debt consolidation loans. This eliminates the risk of funds being used to pay off existing credit cards and loans.

It is expected that rolling this new debt consolidation proposition will significantly expand access to loans, reduce interest rates paid by borrowers, reduce risk for lenders and ultimately help thousands of borrowers.

The funding, linked to Fair4All Finance’s consolidation lending pilot, will be used partly for development costs to build an automated debt consolidation solution that can be used on the ClearScore marketplace, white-labelled for third-party online marketplaces and used in lenders’ direct channels.

Kate Pender, Deputy CEO of Fair4All Finance, said, “We are delighted to be working with ClearScore on their new Clearer proposition and with the lenders who use it to reach people in financially vulnerable circumstances. Debt consolidation lending can reduce people’s monthly outgoings and cut the amount of interest they must pay overall. This direct settlement technology will ensure more people are able to access a consolidation loan, improve their creditworthiness and steer clear of problem debt.”

“We look forward to seeing how Clearer can scale over the coming years and help people in financially vulnerable circumstances pay materially less for their existing debt.”

Andy Sleigh, COO of ClearScore, said, “This funding represents a significant step forward for the expansion of debt consolidation lending in the UK. Our model suggests that many thousands of additional borrowers will be able to access a debt consolidation loan within the next few years, with our users experiencing an improvement in their creditworthiness and reducing their level of indebtedness. This kind of impact on financial mobility cannot be understated and aligns perfectly with the FCA’s focus on increasing access to affordable credit and good consumer outcomes as part of Consumer Duty.”