Following the launch of the Standards of Lending Practice for personal customers, the LSB, in conjunction with representatives from Registered Firms and wider industry stakeholders, has been developing the Standards of Lending Practice for business customers. These will replace the micro-enterprise provisions of the Lending Code and are due to be launched in Q1 2017.
The new Standards of Lending Practice for business customers will see a change in product scope and the protections extended from micro-enterprise customers to include businesses with a turnover of up to £6.5 million. The Standards will be launched in phases:
- Phase 1: due for launch in early 2017, will apply to the existing Lending Code product scope – overdrafts, loans, credit cards and chargecards.
- Phases 2 and 3: the Standards will extend to cover asset finance and peer to peer lending and will be released later on in the year.
As with the Standards of Lending Practice for personal customers, the LSB will produce Information for Practitioners which will set out examples of good practice in relation to the Standards. An implementation period will apply to allow firms to undertake a gap analysis exercise.
Further information will be provided to Registered Firms in due course. If you have any questions on the Standards please contact your LSB Compliance Manager.