Strengthening Protection for Borrowers in Financial Difficulty

In our previous two newsletters –

The Duty and How Do We Stick To It? – Parts 1 and 2

…we covered how The Duty relates to your customers, monitoring, evidencing interactions and outcomes and how you as FIs interact with your Mortgage & Savings Customers.

This month we dive deeper into CP23/13: Strengthening Protection for Borrowers in Financial Difficulty: Consumer Credit and Mortgages.

We have done the heavy lifting and digested the full FCA document and produced an overview, which you can read on our website.

Our aim here is to give you the headlines and you can delve into more depth via our Regulatory Digest or immerse yourself in the full document published by the FCA – just click on the document below.

  • CP23/13 builds on the tailored support guidance issued in response to the pandemic, and makes additional, prescriptive demands on firms’ treatment of retail borrowers in areas such as the charging of fees and balance escalation. It raises the bar significantly in terms of firms being able to evidence, through their internal MI, that they proactively monitor consumers’ use of credit and seek at an early stage to intervene positively when there are signs of actual or potential payment difficulty.

And there are some hard ‘lines in the sand’ around, for example, balance escalation and fees for restructuring.

Click here to read the Consultation Paper.

KnowCo is a specialist UK financial institution support resource. We help with the heavy lifting of implementing new regulatory requirements, as well as maintaining old ones such as ICAAP ILAAP, RRP etc.

From the primary drafting of policies and processes, through laying down MI feedback loops for assurance, our subject matter experts have all the necessary tools and skills to support and guide you through the implementation and remaining abreast of regulatory requirements.

Let us know how we best might be able to support you.

 

Paul Ashton

paul.ashton@knowco.co.uk

Dr Lise Land

lise.land@knowco.co.uk

knowco.co.uk

07799 113535

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