The Lending Standards Board (LSB) has published a report outlining the findings of its themed review of pre-arrears.
The Lending Code (the Code) requires subscribers to lend responsibly and to contact customers if they become aware that customers may be at risk of financial difficulties. The Code prescribes actions that subscribers should take once they become aware that a customer is in financial difficulties, and lists a range of solutions for subscribers to consider in assisting them.
The objective of the LSB review was to assess the adequacy of subscribers’ processes and controls to identify early warning signs of financial difficulties and contact customers as set out in section 9 of the Code. The resulting report summarises the key themes identified during the review and outlines a series of recommendations to strengthen the Code. The LSB will be undertaking further research on the recommendations in the next few months.
Once concluded, the LSB will refer any proposals for inclusion in the new Code due in autumn 2015.
View Themed review – Pre-arrears, 16 February 2015