ClearScore & Stream launch automated debt repayment

ClearScore has partnered with Stream to add automated debt repayment technology to Stream's workplace loans for UK workers, making Stream the first lender to integrate ClearScore's Clearer system into its platform.

The deal brings Clearer into Stream's workplace finance offering, which reaches 3 million employees in the UK through employer partnerships. Workers will be able to use consolidation loans to pay off existing debts automatically, with repayments then made through payroll.

Clearer is designed to address a problem in the debt consolidation market: borrowers do not always use loan proceeds to clear older debts. ClearScore's research found that more than 60% of people taking out consolidation loans failed to use at least half of the funds to repay what they owed.

According to the company's data, those borrowers were nearly three times more likely to fall behind on repayments than people who used the money to pay down their debts. Clearer is intended to remove that risk by directing funds to existing creditors during the application process, rather than leaving borrowers to do it later.

Stream operates a workplace finance platform used by 4 million workers through 2,000 employers globally. Its products include earned wage access, savings, budgeting and affordable credit, with workplace loans repaid through payroll deductions.

The partnership is backed by Fair4All Finance, which focuses on improving access to fair financial products in the UK. The backing will support employees on Stream's UK platform who want to use the technology to consolidate and repay existing debts.

Credit access

The tie-up comes amid pressure on household finances and persistent gaps in access to mainstream credit. In the two years to May 2024, 15.3 million adults applied for one or more credit products, and 22% of applicants were declined.

The UK Government has also highlighted access to affordable credit in its Financial Inclusion Strategy as a way to reduce longer-term financial harm. Lenders and workplace finance providers have been looking for ways to widen access while reducing the risk that borrowers take on new debt without resolving existing liabilities.

For ClearScore, the deal extends a broader push to embed Clearer directly into lending applications, rather than treating debt settlement as a separate step. Earlier this year, the company said it would start integrating the system into lender journeys, and Stream is the first lender to do so.

To date, ClearScore has processed more than GBP 40 million in payments for consolidation loans through the Clearer system. The company argues that automatic settlement gives lenders greater certainty that a new loan has replaced older borrowing.

ClearScore also says the model can help lenders assess risk and price loans more accurately because existing liabilities are repaid at the point of lending. It argues this can reduce default risk, support compliance obligations around foreseeable harm, and keep the process fully digital.

Workplace lending has drawn increasing attention as employers look for ways to support staff facing financial stress without steering them towards high-cost borrowing. The payroll link can reduce repayment friction because instalments are taken directly from salary, though the approach depends on employees having access through participating employers.

Tom Markham, Chief Commercial Officer at ClearScore, outlined the rationale for the partnership.

"Debt consolidation can be a powerful tool for people trying to manage multiple repayments, but historically there has been no guarantee that funds are used to pay down debt. Clearer solves that problem by automating repayment at source. Partnering with Stream means we can bring this technology to workers through their employers, with the consolidated loan repaid through payroll, simplifying the process," Markham said.

Geoff Thiessen, Chief Credit Officer at Stream, said the structure is intended to make consolidation less risky for borrowers already under strain.

"Debt consolidation should be a supportive tool for people under financial pressure, but the data shows that without proper safeguards, it can add to the problem rather than solving it. Clearer changes that completely. By automatically settling existing debts as part of the loan process, and with repayments aligned with payroll, workers get a safer, simpler path out of debt. This partnership with ClearScore is exactly the kind of innovation that demonstrates what fair credit can and should look like, and we're excited to be the first to deliver it through the employer channel," Thiessen said.