FCA has finalised its guidance on the treatment of customers with mortgage payment shortfalls. The guidance addresses how firms should remediate for customer who may have suffered because of the way some firms calculate monthly payments. FCA made few changes following its consultation on the guidance, which effectively stops firms from using “automatic capitalisation” of shortfalls, which results in firms automatically calculating the payment shortfall balance over the remaining term of the mortgage while also treating them as immediately payable. This can lead to a number of unfavourable outcomes for consumers, and FCA requires firms not only to put right this practice so it does not happen any more, but to remediate those who have suffered harm in line with the guidance.
Welcome to FIN
FIN. gives you bite-sized updates on key regulatory changes in the financial institutions and insurance sectors. Every week we send an email summarising what has happened that week. Contact us to be added to our mailing list for updates to FIN.
About Bond Dickinson
Bond Dickinson is a dynamic UK law firm providing a comprehensive legal service to our clients across a wide range of legal expertise and sectors, from seven cities across the UK including London.
FIN. User Guide
You can use FIN. to suit your needs - scroll down our updates (they are in reverse date order), and click on any update to get more information and links to source materials. Or tailor it to your interests, by searching for items by category or by trending tag. You can always access FIN. directly, or you can be added to our contact list and we'll email you every Friday to provide you with a round up of what's happened that week.
advice AIFMD AML asset management Bank of England Banks; beneficial ownership best execution BoE Brexit CASS CMA COBS Commission competition complaints consultation consumer protection Consumers cyber EBA ECB EIOPA equivalence ESAs ESMA European Commission FATF FCA FCA Handbook fees financial sanctions fintech FOS FSCS GDPR high risk jurisdictions HM Treasury ICO IDD innovation Insurance JMLSG KID Lloyd's LSB managing agents MAR marketing MiFID 2 MiFID II MLD4 MLD5 money laundering outsourcing passporting pensions PEP PPI PRA PRIIPS Product governance PSD2 PSR RAO remuneration RTS sanctions single market SMR Solvency 2 supervision Treasury UCITS whistleblowing