The FCA has written to Debt Purchasers, Debt Collectors and Debt Administrators outlining:
- its view of the key risks debt purchase, debt collection and debt administration firms pose to their customers or the markets in which they operate;
- its expectations of debt purchase, debt collection and debt administration firms, including how firms should be mitigating these key risks; and
- its supervisory strategy and programme of work to ensure that firms are meeting FCA expectations, and harms are being remedied.
The FCA recognises that the coronavirus-related restrictions placed on many areas of the UK during 2020 may lead to increased financial difficulty for people. However, the harms to customers remain largely the same and include customer treatment harms, litigation and unenforceable debts, and firms’ prudential resources.
The FCA is prioritising its supervisory strategy and programme of work to ensure that firms are meeting its expectations, and harms are remedied in the areas mentioned above.