FLA comment on FCA’s final rules and guidance on assessing creditworthiness in consumer credit

Commenting on the publication of the Financial Conduct Authority’s (FCA) final rules and guidance on assessing creditworthiness in consumer credit, Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said: “Today’s policy statement will require careful reading but, at first glance, we are pleased that the FCA has listened to industry feedback on household income, and agrees that allowing only an individual’s income to be taken into account in lending decisions would have had an adverse impact on financial inclusion. We also welcome the FCA’s recognition that different approaches to affordability assessments are appropriate in different markets.”

“Responding to industry concerns, the FCA has also agreed to a longer implementation period for the new rules, which will give firms more time to make the necessary system changes.”