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Definition of Hardship - RBS Events which may lead to being considered in hardship
Divorce - warranting loss of income
Loss of Job - customer or partner
Reduction in earnings due to unexpected occurence
Maternity
Increased dependants (more kids/dependant relative)
Customers should not be considered or Financial Hardship just because they have too much to repay. There has to be an additional change in circumstances. In considering suitability consideration must be given to current guidelimes from regulatory bodies and also consider reputational risk to the Bank whilst not compromising credit risk.
QUALIFYING CRITERIA
Total house income must be less than 15,000 PA
or - normal house income has suddenly reduced by 50% or more
or - unforeseen outgoings have suddenly increased by 50% or more
These case can be managed by the Collecton Centres for a period of 6 months whereupon the position is reviewed and if no change in circumstances account should be referred to CMS
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Divorce - warranting loss of income
Loss of Job - customer or partner
Reduction in earnings due to unexpected occurence
Maternity
Increased dependants (more kids/dependant relative)
Customers should not be considered or Financial Hardship just because they have too much to repay. There has to be an additional change in circumstances. In considering suitability consideration must be given to current guidelimes from regulatory bodies and also consider reputational risk to the Bank whilst not compromising credit risk.
QUALIFYING CRITERIA
Total house income must be less than 15,000 PA
or - normal house income has suddenly reduced by 50% or more
or - unforeseen outgoings have suddenly increased by 50% or more
These case can be managed by the Collecton Centres for a period of 6 months whereupon the position is reviewed and if no change in circumstances account should be referred to CMS
__________________
