We have launched revised Standards of Lending Practice for personal customers, outlining the way registered firms are expected to deal with their customers throughout the entire product life cycle.
The Standards set the benchmark for good lending practice in the UK and apply across digital, branch and telephony networks. Their protections cover overdraft, credit card, chargecard and unsecured loan products and services provided to customers. Signing up to and adhering to the Standards signals a firm’s commitment to delivering fair outcomes for their customers.
The Standards’ customer outcomes focused approach provides flexibility for firms to achieve good customer outcomes while continuing to innovate and to deliver products and services that meet the evolving needs of consumers.
The revised Standards, which will become effective on 1 July 2021, recognise that customers are increasingly accessing credit and communicating with their lenders through a variety of different channels.
Alongside changes to the existing Standards, we are introducing a new Standard on product and service design. This will ensure that registered firms consider the needs of those customers who are at risk of exclusion, those who may be vulnerable or those who might at some point experience financial difficulty.
The new Standard also encourages registered firms to consider what support can be provided to customers to help them use products and services which are delivered though digital channels.
To help ensure firms can adhere to the revised Standards, we will be updating the Information for Practitioners documents on a rolling basis.