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Loans: Defaulters

Question for HM Treasury

UIN 34433, tabled on 18 April 2016

To ask Mr Chancellor of the Exchequer, what information his Department holds on the reasons for the FCA changing its policy on whether guarantor lenders should have to issue legal default notices on borrowers before collecting money from guarantors as set in PS15/23, of September 2015, to that set in GC16/2, of February 2016.

Answered on

22 April 2016

These are matters for the Financial Conduct Authority (FCA) and relate to FCA Guidance Consultation (GC16/2) issued on the interpretation of provisions in the Consumer Credit Act 1974, regarding whether a default notice should be given to a guarantor before payment is taken from them when a borrower defaults. The FCA is currently considering responses to the consultation and will publish a response after considering the complex issues raised.

Answered by

Treasury