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FCA: Highlights concerns when credit firms allow repeat borrowing

August 10, 2020

The review which completed prior to the coronavirus pandemic, highlights concerns about poor practices by some firms
As firms in this sector begin to lend again the report sets out the FCA’s expectations on how they must treat consumers
The review found that levels of debt increased as consumers took additional credit from high-cost lenders
High-cost credit customers more likely to be vulnerable have low financial resilience and poor credit histories
The report also calls out concerns about behaviour which suggests some customers may be trying to deal with financial difficulties
The FCA made a number of temporary interventions to help consumers who are under additional financial pressure due to the impact of coronavirus