What does the Office of Fair Trading (OFT) Second Charge Lending Guidance say about the CFS?
The OFT is the UK’s consumer and competition authority. The Second Charge Lending Guidance sets out the minimum standards the OFT expects from businesses engaged in second charge lending if they are to be considered fit to hold a licence. It covers the entire lending process including selling techniques, customer care, and practices around the management of arrears. Section 5.9 of the guidance states: “When a borrower is experiencing difficulties, lenders should seek, wherever possible, to negotiate reasonable repayment plans which reflect the circumstances of the individual borrower and are based on an assessment of affordability having regard to the borrower’s income and other financial commitments (for example, as would be disclosed in a Common Financial Statement)”. For more information please view the OFT Second Charge Lending Guidance.
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