In this Policy Statement we respond to feedback arising from CP17/27 (PDF) and publish final rules and guidance on assessing creditworthiness in consumer credit.
In particular, the changes clarify:
- the distinction between affordability and credit risk
- the factors that should be used when deciding the proportionality of assessments
- the role of income and expenditure information
- our expectations around firms’ policies and procedures
Who this applies to
The changes principally affect:
- consumer credit lenders
- peer-to-peer (P2P) platforms
- trade bodies representing these firms
The rules (set out in Appendix 1 of PS18/19) come into force on 1 November 2018.