Experian and Fair4All Finance Join Forces to Enhance Debt Solutions

Global data and technology firm Experian has announced a partnership with the British not-for-profit organization Fair4All Finance aimed at improving access to debt consolidation products for consumers in the United Kingdom. The collaboration will utilize a £1 million (approximately $1.3 million) grant from Fair4All Finance to promote ReFi, a technology developed by Experian that consolidates multiple debts into a single loan.

This innovative approach allows ReFi to directly settle existing debts with creditors. As detailed in a press release on November 26, 2024, this method effectively eliminates the problem of “double counting.” Double counting occurs when both the original debts and the new consolidated loan are included in affordability assessments, making it more difficult for individuals to qualify for debt consolidation loans.

Expanding Access to Debt Consolidation

Experian and Fair4All Finance aim to scale the ReFi solution through additional lenders within the Experian Marketplace. Their initial target is to assist 10,000 borrowers in reducing their interest charges by £50 million. “By making debt consolidation easier and lowering monthly payments, we’re fulfilling our commitment to financial inclusion, helping individuals regain control of their finances,” stated Edu Castro, Managing Director of Experian Consumer Services UK&I.

Kate Pender, CEO of Fair4All Finance, emphasized the importance of providing fair and affordable credit as a safety net for millions of financially excluded individuals in the UK. “This direct settlement technology will ensure that more people can access a consolidation loan, improve their creditworthiness, and avoid problem debt,” she remarked.

Experian acquired the ReFi solution from the financial technology company Paylink in January 2024. The two organizations had previously collaborated in September 2024 to introduce a debt consolidation solution that leveraged ReFi to expand access to a wider range of consumers through the Experian Marketplace.

Insights from Research

In its announcement regarding the ReFi acquisition, Experian cited research conducted for Fair4All Finance, revealing that 41 million consumers in the UK hold credit products, with 83% (approximately 34 million) involving revolving debt that remains unoptimized. Debt consolidation continues to be the most sought-after reason for consumers searching for loans on the Experian Marketplace. Yet, many individuals who could benefit from these loans struggle to qualify due to strict affordability restrictions.

This partnership between Experian and Fair4All Finance represents a significant step toward addressing the pressing need for effective debt management solutions in the UK, ultimately aiming to enhance financial stability for thousands of consumers navigating challenging economic circumstances.