On 25th May 2023 the FCA published a Consultation Paper (CP23/13) setting out its plans to remove the current Tailored Support Guidance (TSG), but to include aspects of the guidance into its Consumer Credit and Mortgages and Home Finance: Conduct of Business sourcebooks.
The TSG was originally introduced during the coronavirus pandemic, providing firms with the relevant know-how to support their customers in financial difficulty. Now, with the current cost of living crisis, it is still vital that lenders support their customers, including those who are struggling financially and facing payment difficulties.
The aim of the Consultation is therefore to provider a stronger framework for firms to better support their customers by including key aspects of the TSG into the Handbook.
Many lenders will be affected, including consumer credit lenders, mortgage lenders and administrators, premium finance firms and home purchase providers to name but a few.
The Consultation closes on July 13th 2023 and firms are invited to provide feedback either via an online response form or email.
The FCA expects new rules to come into force in H1 2024 and proposes to withdraw the TSG at the same time.