Lender resumes visiting its customers

Credit firm encouraged as life returns to normal

CREDIT LENDER Internal Personal Finance (IPF) said almost all of its agents have resumed weekly visits to customers and a phased return to work for its office-based staff is underway, both under strict safety measures.

The Leeds-based firm reported resilient debt collection in April and May and this improved in June to reach 88 per cent of preCovid expectations. In April, it was 76 per cent and in May it was 80 per cent.

Gerard Ryan, CEO of IPF, said: “I am very encouraged by the continued improving performance delivered in June, both in terms of customer collections and credit issued.

“Most of our agents have resumed their weekly visits to customers and, as we steadily increase new lending across our home credit and IPF Digital businesses, we expect to deliver further improvements in performance.

“Our business plays a key role in society by providing credit responsibly to consumers who are underbanked or underserved, and we are well-placed to continue to meet their credit needs after the impact of Covid-19 subsides.”

IPF specialises in providing unsecured consumer credit to two million customers across 11 markets. It operates the world’s largest home credit business.

The group said it was encouraged by the extent to which its businesses are now stabilising into a “new normal” operational environment.

The recovery was greatest in European home credit, which increased to 87 per cent of pre-Covid expectations despite a more significant impact in Hungary where a higher proportion of customers have taken advantage of the temporary opt-out repayment moratorium.

It expects debt collection to progressively improve in the coming months.

In Mexico, where there has not been a government required national lockdown, agents’ ability to visit their customers has been less affected. Plans are in place for office-based colleagues to return to the workplace in the next couple of months.

Mr Ryan said: “It is clear that there is continuing strong demand for our products and, had we chosen, we could have issued significantly higher new credit volumes.

“We have, however, prudently chosen to prioritise collections, liquidity and the quality of our loan book, and accordingly have carefully managed the volume of new loans issued.”