From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out 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. Please go to for wider content and updates from UK Finance.

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CML responds to FCA announcement of arrears remediation consultation

Published: 19 October 2016

The Council of Mortgage Lenders today responds to the FCA's announcement of a consultation on a potential framework for remediation to address past arrears calculation methodology problems.

The FCA's attention to the detailed methods of calculation has been a technical exercise, involving the industry. Those lenders who used the calculation method now being identified as problematic were always fully transparent with the regulator on their arrears calculation and charging methods, which were in line with longstanding industry practice. They acted in good faith that these were in line with the rules.

Lenders welcome the consultation on remediation proposals, and the CML will respond formally by the January deadline. Lenders are fully committed to ensuring that they review past cases appropriately. The CML and lenders are also fully committed to constructive working with the regulator to develop a consistent industry-wide approach for the future. Lenders will pro-actively identify and contact affected customers to ensure that any compensation due to them as a result of this technical issue is paid.

It is very unlikely that any customer in the past has experienced repossession who would not otherwise have done so if a different arrears calculation method had been used. Courts only ever grant repossession where there is a significant history of non-payment and little prospect that the customer will be able to recover, based on a holistic view of all the facts in the case.

Paul Smee, CML director general, says:

Those lenders who used the arrears calculation methodology now identified as problematic did so in good faith, believing that they complied with the rules and were acting in customer interests. They are fully committed to delivering fair outcomes for all customers, past and present. Customers do not need to do anything. Once lenders have digested the regulator's consultation and determined the most appropriate way to undertake the expected remediation, they will be in touch directly with affected customers.

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion.

2. The FCA's announcement of a consultation on mortgage payment shortfall remediation guidance can be viewed on the FCA's website.


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