FCA

FCA review may impact MCOB provisions

FCA review may impact MCOB provisions

The Financial Conduct Authority (FCA) has announced that it is proposing a change to the way that mortgage lenders allocate customer payments in circumstances where customers have fallen into arrears.

The proposals, which the FCA says are designed to assist customers to get their accounts out of arrears in a shorter period of time, would mean that customer payments are not used by lenders to pay off arrears-related interest and charges unless and until the balance of the shortfall itself has been paid.

FCA publishes hard hitting report on the poor service to consumers provided by the debt management sector

FCA publishes hard hitting report on the poor service to consumers provided by the debt management sector

On 25 June 2015, the FCA published its paper reporting the findings of its thematic review of the quality of service provided to consumers in the debt management sector. The firms assessed by the FCA ranged from fee-charging debt management firms of all sizes to free-to-customer organisations such as charities.

The review is the second undertaken by the FCA following its takeover of the regulation of the consumer credit market in April 2014. The FCA believes debt management to be one of the country’s highest risk activities in the consumer credit sector.

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