FCA dear CEO letter on Strategy for Consumer Lending
16/04/2024
In March, the FCA issued a Portfolio Letter for Consumer Lending Firms
Notably, this letter marks the first time the FCA has simultaneously addressed three topics [portfolios], as it addresses.
- High-Cost Lending,
- Mainstream Consumer Credit, and
- Credit Union Firms in one go.
The rationale for merging these topics is based on the shared characteristics in products, customer demographics, and associated risks.
The FCA says.
The FCA’s letter also highlights the following core messages:
- A well-functioning market depends on firms “lending affordably and sustainably, mitigating the risk of poor consumer outcomes, and providing appropriate assistance to consumers facing financial hardship.
- A predominant theme of heightened customer vulnerability and decreased financial resilience, something that should be a priority to address for all Firms. Particularly considering the anticipated thematic review on vulnerability that is due this year.
Whilst a specific communication for Motor Finance, Retail Finance, and Mortgage providers will be forthcoming, all Firms must read this letter [FCA expectation] and evidence the actions taken in response.
Source letter
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.