[INSIGHTS]: CP23 13 Strengthening Protections for Borrowers in Financial Difficulty: Consumer Credit and Mortgages

External Links:

https://www.fca.org.uk/publication/consultation/cp23-13.pdf

Summary

The Consultation Paper CP23/13 aims to strengthen protections for borrowers in financial difficulty in the UK. The paper proposes changes to the Consumer Credit Sourcebook (CONC) and the Mortgages and Home Finance Conduct of Business Sourcebook (MCOB) to ensure that firms provide tailored support to customers in financial difficulty. The paper also introduces the Tailored Support Guidance (TSG) to help firms identify and support customers in financial difficulty during the pandemic.

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Key Points

  • The consultation paper proposes changes to the CONC and MCOB to ensure that firms provide tailored support to customers in financial difficulty.
  • The Tailored Support Guidance (TSG) introduced during the pandemic helps firms identify and support customers in financial difficulty.
  • The paper proposes that firms must review the effectiveness of their policies and procedures at appropriate intervals.
  • The paper proposes that firms must assess the affordability of credit before providing credit to customers.
  • The paper proposes that firms must provide customers with information on the risks and costs of credit.
  • The paper proposes that firms must provide customers with information on the consequences of non-payment.
  • The paper proposes that firms must provide customers with information on the options available to them if they are in financial difficulty.
  • The paper proposes that firms must provide customers with information on the support available to them from debt advice charities.
  • The paper proposes that firms must provide customers with information on the support available to them from the government.
  • The paper proposes that firms must provide customers with information on the support available to them from the firm.
  • The paper proposes that firms must provide customers with information on the impact of taking payment holidays on the cost of credit.
  • The paper proposes that firms must provide customers with information on the impact of taking payment holidays on their credit file.
See also  INSIGHTS ¦ Debt Fairness Charter

Key Take Aways

  • Firms must provide tailored support to customers in financial difficulty.
  • Firms must review the effectiveness of their policies and procedures at appropriate intervals.
  • Firms must assess the affordability of credit before providing credit to customers.
  • Firms must provide customers with information on the risks and costs of credit.
  • Firms must provide customers with information on the consequences of non-payment.
  • Firms must provide customers with information on the options available to them if they are in financial difficulty.
  • Firms must provide customers with information on the support available to them from debt advice charities.
  • Firms must provide customers with information on the support available to them from the government.
  • Firms must provide customers with information on the support available to them from the firm.
  • Firms must provide customers with information on the impact of taking payment holidays on the cost of credit.
  • Firms must provide customers with information on the impact of taking payment holidays on their credit file.
  • The Tailored Support Guidance (TSG) introduced during the pandemic helps firms identify and support customers in financial difficulty.
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