One of the key debating points in the industry is the affordability assessment when a customer is in financial difficulty and the topic is one that has been highlighted in the FCA’s risk outlook.

Our review initially consisted of an in-house desktop research piece to draw together the intelligence that we have on affordability assessments. This was supported by discussions with six firms, including one DCA, and based on a number of scenarios. The work will conclude with visits to other parts of the industry which might offer some insight into customer behaviour.

The output will help inform the new Standards of Lending Practice, and a summary report will be published in August 2016.