Reactive comment – FCA persistent debt

Following the announcement that the FCA has written to credit card firms telling them to review their approach to borrowers who are stuck in persistent debt, Paul Dyer, Head of Regulatory Risk and Assurance, Huntswood and former deputy chief risk officer at the FCA said: “This is another clear demonstration of the FCA’s ongoing commitment to prioritising better outcomes for vulnerable customers, particularly those who find themselves in perpetual financial difficulty.”

“Identifying and taking appropriate action for those at risk or in financial distress is key for firms to support vulnerable consumers. It is crucial that firms invest in appropriate systems and high quality training for frontline staff to spot and support consumers in persistent debt. Firms should also undertake an assessment of their internal policies and procedures to ensure that they are designed to identify and support vulnerable customers in line with evolving best practice. Investing in these measures will not only satisfy the regulatory requirements, but also help minimise the potential for persistent debt to accumulate in future.”