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FCA publishes PS24/2 on strengthening protections for borrowers in financial difficulty

Link(s):PS24/2: Strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages | FCA Policy Statement 24/2: Strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages (fca.org.uk)
Improving picture for personal finances, but many still struggling | FCA

Context

The FCA has published a Policy Statement following its consultation on strengthening protections for mortgage, consumer credit and overdraft customers in financial difficulty (CP23/13).

Key points to note and next actions

The new rules incorporate aspects of the coronavirus Tailored Support Guidance (TSG) into the FCA Handbook, as well as further, targeted changes to support customers in financial difficulty.  The new rules replace the existing TSG when they come into force on 4 November 2024.

Firms affected by this policy statement include:

  • consumer credit lenders
  • premium finance firms
  • mortgage lenders and administrators
  • home purchase providers and administrators
  • firms who carry out activities in relation to consumer hiring, operating an electronic system in relation to lending (in relation to a borrower under a P2P agreement) or debt collecting
  • consumer credit and mortgage lenders in supervised run-off under the financial services contracts regime
  • Gibraltar-based consumer credit and mortgage lenders passporting into the UK