The PRA’s “Dear Chair” letter on consumer credit

On 17 January 2018, the PRA published a “Dear Chair letter” following a review on consumer credit lending (covering credit cards, personal loans and motor finance) and the publication of its statement on consumer credit in July 2017.

The letter communicates the PRA’s key findings from the review and sets out points for firms to action, on the following topics:

• management information and governance
• medium-term economic downturn risks
• creditworthiness and affordability assessments
• 0% interest credit card offers
• unsecured personal loans  and
• guaranteed Future Value (GFV) in motor finance, and stressed falls in car prices.