PS18/19: Assessing creditworthiness in consumer credit

Open consultation: CP17/27
31/07/2017
Consultation closes
31/10/2017
Policy Statement
30/07/2018
30/07/2018

In this Policy Statement we respond to feedback arising from CP17/27 (PDF)[1] and publish final rules and guidance on assessing creditworthiness in consumer credit.

Show PS18/19 (PDF)[2]

In particular, the changes clarify:

  • the distinction between affordability and credit risk
  • the factors that should be used when deciding the proportionality of assessments
  • the role of income and expenditure information
  • our expectations around firms’ policies and procedures

Who this applies to

The changes principally affect:

  • consumer credit lenders
  • peer-to-peer (P2P) platforms
  • trade bodies representing these firms

Next steps

The rules (set out in Appendix 1 of PS18/19[2]) come into force on 1 November 2018.

First published: Last updated: 30/07/2018

More on creditworthiness

Occasional Paper No. 28: Preventing financial distress by predicting unaffordable consumer credit agreements[3]
Assessing creditworthiness in consumer credit: Summary of research findings[4]

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