PS15/23: Consumer credit - feedback on CP15/6 and final rules and guidance

In this policy statement we report on the main issues arising from CP15/6 (Consumer credit – proposed changes to our rules and guidance) and publish the final rules and guidance.

Why are we issuing this Policy Statement?

This Policy Statement includes our responses to the feedback we received to our consultation CP15/6 Consumer credit - proposed changes to our rules and guidance, published in February 2015.

In CP15/6, we outlined our proposed changes in a number of areas, including:

  • credit broking
  • lending (including guarantor lending)
  • financial promotions
  • debt

Policy Statement 15/23 [PDF]

Having reviewed the feedback, we are introducing the majority of the changes we consulted on, but we have made some modifications and are planning further work in some areas. Some of these changes come in to force on 28 September 2015 but most come in to force on 2 November 2015.

The policy statement also includes detail of further work we are planning, including in relation to credit broking and guarantor lending

We want to thank everyone who sent us a response. Also, as a result of feedback we received during our roadshows, we have also published two 'common misunderstandings' documents to help firms understand our current rules on creditworthiness and affordability and what credit permissions they need.

Who is this Policy Statement aimed at?

The Policy Statement will primarily be of interest to:

  • authorised firms with permissions to conduct consumer credit-related regulated activities, including firms with interim permission
  • firms that are considering applying for consumer credit authorisation
  • trade bodies that represent consumer credit firms
  • not-for-profit debt advice bodies
  • consumer organisations

It may also be of interest to consumers, including anyone who has taken out a loan or credit product, directly or via a credit broker, or has experienced difficulties paying back debt.

Next steps

We will continue to review the consumer credit market to ensure consumers are protected, our regulation is proportionate and firms are clear on our expectations. Firms should review our policy statement to ensure they comply with our final rules and guidance.

Want to find out more?