Assessing creditworthiness in consumer credit ( changes to CONC 5 )

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From the FCA

In this Policy Statement we respond to feedback arising from CP17/27 (PDF) and publish final rules and guidance on assessing creditworthiness in consumer credit.

Show PS18/19 (PDF)
In particular, the changes clarify:

• the distinction between affordability and credit risk
• the factors that should be used when deciding the proportionality of assessments
• the role of income and expenditure information
• our expectations around firms’ policies and procedures

Who this applies to

The changes principally affect:

• consumer credit lenders
• peer-to-peer (P2P) platforms
• trade bodies representing these firms

Next steps

The rules (set out in Appendix 1 of PS18/19) come into force on 1 November 2018.