The FCA has published press releases concerning two new thematic reviews which will look at:

  • early arrears management in unsecured lending. This is a ‘discovery’ thematic review which will examine how lenders treat customers in early arrears and what the outcomes for those customers are. The review will test whether firms have due regard to the interests of their customers and exercise appropriate forbearance. The FCA will assess firms to see whether their treatment of customers in the early stages of arrears is compliant with its existing rules, including the Principles for Businesses, and consider whether good or poor practices are employed; and
  • how consumer credit firms pay and incentivise their staff and manage the risks arising from these reward arrangements. The purpose of this review is to understand the nature of staff incentives, remuneration and performance management arrangements in the consumer credit market. The FCA will focus on the risks that can arise and how firms control and mitigate those risks. The FCA will examine good and poor practice.

Reporting on the thematic reviews will take place in Q2 2016 and Q1-Q2 2016 respectively.

View TR: Early arrears management in unsecured lending, 12 August 2015

View TR: Staff remuneration and incentives, 12 August 2015