In Focus Consumer Credit
Standards of Lending Practice for business customers
New standards have been introduced to extend protections already enjoyed by consumers to business customers
Laura Mahoney Legal and policy manager, Lending Standards Board
On 28 March, the Lending Standards Board (LSB) formally launched the Standards of Lending Practice for business customers. The standards represent a change in
approach from the days of the Lending Code which combined personal and micro- enterprise customers and focused on detailed, prescriptive rules. The creation of a separate set of standards
for personal and business customers has allowed for the development of a bespoke set of standards for business lending that focuses on the differing needs and requirements of this type of customer.
Focus on principles Both the personal and business standards now focus on principles, customer outcomes, and standards instead. This framework provides firms with flexibility to take account of the diverse range of business customers and the way in which they are able to demonstrate how they achieve the right outcome for these customers. The focus on customer outcomes is
something that can be lost with very detailed rules, and importantly creates an agile, rather than static, approach to regulation which is able to adapt to innovation in the market.
The creation of a separate set of standards for personal and business customers has allowed for the development of a bespoke set of standards for business lending that focuses on the differing needs and requirements of this type of customer
Small businesses play a vital role in
supporting the UK economy. Contributing to sustained growth in productivity and innovation, their role is significant and it is essential, therefore, that these businesses are given every opportunity to thrive. In 2016 there were 1.3 million employing
businesses and 4.2 million non-employing businesses. There has been, and continues to be, intense scrutiny of the treatment of small businesses and whether good customer outcomes have always been achieved. In addition, the launch of the standards
comes at a time when the All Party Parliamentary Group on fair business banking is calling for the development of an enforceable industry code of conduct.
April 2017
www.CCRMagazine.co.uk
>> 23
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
