Emma RadmoreFCA has published its finalised guidance for firms that provide Pay as You Grow options under the BBLS. The guidance:
- notes that CONC 7 generally applies to set out the rules for fair treatment of customers in arrears or difficulties, and applies to firms carrying out regulated debt collection under the BBLS;
- sets out how firms can comply with CONC 7 when offering PAYG options – stressing that while PAYG will often provide the most appropriate forbearance, firms must assess this properly and help customers make informed choices;
- gives guidance on how firms can recognise vulnerability and respond to the needs of vulnerable customers;
- explains how firms can help borrowers who need debt advice; and
- signposts the LSB guidance for firms whose debt collections are not within CONC 7, and reminds firms that it has “recognised” the LSB Standards, so that compliance with them would be taken into account if assessing whether a firm had observed proper standards of market conduct in its unregulated activities for the purposes of COCON.
The guidance will take effect from 27 January until varied or revoked.