PS18/19: Assessing creditworthiness in consumer credit

Open consultation: CP17/27
Consultation closes
Policy Statement

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.

Show PS18/19 (PDF)

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

Next steps

The rules (set out in Appendix 1 of PS18/19) come into force on 1 November 2018.