Terry Baxter, Director of Risk and Compliance at Target Group, said: “The FCA’s findings on how mortgage lenders treat customers who have long-term arrears is a timely and important study. There has been a movement by a considerable number of stakeholders to assess the practices used and ensure they are suitable for specific customers. This is undoubtedly positive and the more the industry puts its customers first, the better.
“It is crucial that lenders who are not sure on what best practice looks like, or have any concerns around their service offerings, review and adapt their processes effectively. Having thorough case monitoring and reviews in place, solid frameworks to assess a customer’s vulnerability and accurate communications are all key to ensuring customers are treated fairly.
“The FCA highlighted that some firms adopted poor practices that meant client communications were not always accurate, or other payment measures were not considered. It is important, particularly in the current business context, that lenders are confident in their systems and employ robust practices, and if not, look to outsource particular functions to ensure customer service remains excellent.”