In February 2016, the FCA published Guidance Consultation 16/2: Proposal to issue guidance on the FCA’s view of enforcing security under the Consumer Credit Act 1974 (GC16/2). In GC16/2 the FCA set out proposed guidance relating to guarantor loans, under which an individual other than the borrower provides a guarantee or indemnity (or both) in relation to a regulated credit agreement or a regulated consumer hire agreement. The proposed guidance also provided an updated FCA view on the need for a default notice in certain circumstances as set out in Policy Statement 15/23: Consumer credit – feedback on CP15/6 and final rules and guidance.
The FCA has now published Guidance Consultation 16/7: Revised proposed guidance on guarantor loans (GC16/7). In GC16/7, the FCA consults on draft guidance that takes into account the comments received to GC16/2. The deadline for comments is 25 November 2016.
Once finalised the guidance will constitute general guidance to consumer credit firms regarding the FCA’s interpretation of the relevant provisions of the Consumer Credit Act 1974.
View FCA revised guidance consultation on guarantor loans, 25 October 2016