
TCF checklist released in reaction to crisis
Consumer groups the NCC and Financial Inclusion Centre have produced a TCF checklist for firms to help protect vulnerable borrowers
LONDON – Treating customers fairly amid the present ‘perfect storm’ of market conditions is the theme of new research by the National Consumer Council (NCC) and the Financial Inclusion Centre.
The NCC highlights that 4 million UK customers are vulnerable to changes in the financial climate, and asks what can be done in the short and long term to limit the credit crunch’s impact.
The study encourages lenders to be sympathetic in the way they deal with vulnerable customers and sets out a checklist to help translate the Treating Customers Fairly initiative into practice. Lenders are advised to contact borrowers they class as being at risk – such as first-time buyers and customers with discounted fixed-rate deals due to end – before they encounter difficulties.
For borrowers with short-term difficulties, lenders are advised to offer a range of interest rate relief options, such as temporary interest rate cuts and payment holidays. The study also advises the suspension of penalty fees and recording positive credit data for customers participating in debt management schemes, with third-party recovery and legal action only employed as a last resort.
Mick McAteer, director of the Financial Inclusion Centre, says: “Remember, this is just the first phase of the credit crisis. The priority is to protect over-indebted consumers most at risk. Lenders have a chance to show they take corporate social responsibility seriously.
“But long-term solutions are needed to protect millions of consumers who could be trapped in expensive and potentially unfair loans, or denied access to fair and affordable loans in the future.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
EU banks want the cloud closer to home amid tariff wars
Fears over US executive orders prompt new approaches to critical third-party risk management
Op risk data: BofA biffed for $540m over insurance fund swerve
Also: Suspected French Ponzi, Banco Itaú’s overcharging kerfuffle, and power outage in Iberia. Data by ORX News
Emir 3.0 could complicate Eurex cross-margining for repo
Clearing house targets November 2025 to launch repo on Prisma, but new EU rules are imminent
Vendor oversight splinters across FMIs
Op Risk Benchmarking: firms grapple with “chaos” of third-party rule changes, amid growing recognition of cyber and resilience threats
Evalueserve tames GenAI to boost client’s cyber underwriting
Firm’s insurance client adopts machine learning to interrogate risk posed by hackers
Wait in the Q: US banks hold back on tariff-related provisions
Lack of data on supply chain vulnerabilities creates challenges for early CECL adjustments
Rising systemic risk demands a new risk management paradigm
Reinsurers need insurance-linked securities to share burden of climate-related catastrophic risk
ECB removes need for governing council to approve CCP facility
New “automatic” facility will require safeguards that are “still being implemented”, bank says