We are consulting on proposed changes to our rules and guidance on assessing creditworthiness in consumer credit.
This is in light of concerns about the risk of potential harm to consumers from poor culture and practice by firms. This could lead to consumers being granted credit which they cannot afford to repay, causing financial distress. It could also lead firms to develop processes which are unduly costly or restrictive.
In particular, we want to clarify:
We have undertaken research to inform our judgment.
We have also published an Occasional Paper:
This consultation principally affects:
It will also be of interest to trade bodies and consumer organisations.
Please send us your comments by 31 October 2017:
You can also:
After considering all feedback, we expect to publish a Policy Statement with final rules and guidance in the first half of 2018.