UK Finance responds to the FCA announcement on consumer credit

Eric Leenders, Head of Personal at UK Finance, said:

?Our members are committed to responsible lending and to serving better those customers who require access to credit, whether an overdraft, loan or credit card. When used sustainably consumer credit is important for economic growth, and lenders work hard to ensure the balance is right between helping customers to borrow while ensuring longer term affordability. Transparency is important and our members are constantly developing new ways to make the costs of an overdraft even clearer. If a customer is struggling with repayments they should speak to their lender straightaway.

?With the current prudential regulatory focus on rising consumer credit, it is understandable that the FCA will also want to look closely at firms? assessment of how customers can repay if economic circumstances change. We will carefully consider these reports and will continue to work with the regulator in supporting those customers who do not use credit in a way which is in their best interests.?


  • All our members undertake a thorough risk assessment of a customer's finances whenever they apply for credit. This degree of rigour continues throughout the relationship, with ongoing monitoring of how the customer uses the credit product and how they repay.
  •  It is never in a lender's interests to allow customers to borrow money which they will be unable to repay.
  • Banks have introduced a number of preventative measures to make customers aware that they might be about to go overdrawn or reach their agreed limit, and help them understand the charges that they might incur, as well as providing support and product features to help minimise any charges. These include text alerts and mobile apps, as well as product fee free buffer zones.

Notes to Editors

For more information contact: Giles Mason on 020 3217 8436 or

About UK Finance

UK Finance is a new trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. Our role is to help our members to build customer trust, facilitate appropriate industry-wide collaboration, and work constructively with policy makers and regulators in the UK, EU and at a global level on financial services regulation; at all times seeking to ensure that the UK retains its position as a global leader in financial services.

The new organisation brings together activities formerly undertaken by the Asset Based Finance Association, the British Bankers? Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. We represent around 300 firms in the UK providing credit, banking, markets and payments-related services.

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