The Lending Standards Board (“LSB“) has published a consultation document to launch a full review of the effectiveness of the Contingent Reimbursement Model Code (“CRM Code“) and its impact on consumers and the industry.
The consultation sets out questions across four areas:
- Implementation – LSB seeks to establish any challenges firms have faced in adopting the Code, any barriers that exist to new firms signing up, and areas where the Code could be improved.
- Customer experience – LSB seeks to establish whether the Code has met its objective to increase the proportion of customers protected from the impact of Authorised Push Payment (“APP“) scams and to determine what the experience of victims of APP scams has been to date.
- Prevention measures – LSB seeks to establish where consumer education and awareness campaigns, warnings, and Confirmation of Payee are working effectively to support the objectives of ‘no blame’ scenarios.
- Resolving claims – LSB seeks to establish what challenges firms face when deciding to reimburse a customer, including in relation to how reimbursements are funded in ‘no blame’ scenarios.
The consultation closes at 5pm on 30 September 2020.