The LSB welcomes the publication of TSB’s business Lending Pledge and are supportive of the continued industry focus upon the fair treatment of businesses in financial difficulty.
The Standards of Lending Practice, launched in March 2017, require firms to identify and support businesses who are at risk of, or are experiencing, financial difficulty. We are encouraged that TSB has encapsulated in their pledge the spirit of their adherence to the Standards which seek to ensure that business customers receive fair treatment and appropriate support throughout their relationship with their lender.
We are currently working with representatives from our registered firms to extend the protections contained in the Standards of Lending Practice to businesses with a turnover of up to £25 million. This will include a focus on business support units and TSB’s Lending Pledge will be taken into account as this work progresses.
The Standards of Lending Practice for business customers are underpinned by the LSB’s proactive and robust oversight framework which ensures that firms are adhering to the requirements of the Standards.
The Standards’ product scope applies to loans, commercial mortgages, overdrafts, credit cards, charge cards and asset finance products provided to small businesses with a turnover of up to £6.5m.
Our registered firms include retail banks, smaller lenders, monoline credit card providers, debt purchase and debt collection firms. The LSB has 38 registered firms, 20 of which currently lend to small businesses, covering approximately 96% of the small business market.