Skip to content
Subscriber Only

U.K. Banks Near Agreement on Plan to Recover Soured Covid Loans

  • Lenders to outsource bad debt collection to panel of agencies
  • Consortium will set up a master unit to oversee the process

British banks are finalizing plans for outsourcing the recovery of billions of pounds in taxpayer-backed business loans issued during the Covid-19 pandemic.

A consortium of lenders is expected to set up an entity that will oversee debt collectors tasked with chasing bad loans, people with knowledge of the matter said. A final decision is expected in early December, said the people, who asked not to be named discussing private information.