INSIGHTS ¦ PS24/2 Strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages

FCA

Summary
The policy statement PS24/2 issued in April 2024 by the UK Financial Conduct Authority (FCA) addresses the augmentation of protections for borrowers experiencing financial hardships. It elaborates on feedback from previous consultations and finalizes rules designed to help those with consumer credit, mortgages, and overdrafts.
Key Points

The FCA has finalized rules integrating aspects of the coronavirus Tailored Support Guidance into the FCA Handbook, enhancing protections for borrowers in financial difficulty.
These rules are primarily aimed at a wide array of financial institutions, including consumer credit lenders, mortgage lenders, and home purchase providers.
The new rules emphasize the necessity for firms to support consumers facing increased financial challenges due to the rising cost of living post-pandemic.
The rules expect firms to consider customers' individual circumstances and provide appropriate forbearance options.
There is an expectation for enhanced enga...