Minor FCA Handbook changes related to mortgage borrowers with a payment shortfall
Last updated: 10 Aug 2016
- Consulting body:
- Financial Conduct Authority
- Period of consultation:
- Runs from 10 June 2016 to 10 August 2016
- CML action:
- Response submitted
The FCA have published a Consultation Paper consulting on minor changes to their Glossary definition of ‘payment shortfall’, which sets out how firms should allocate payments received from customers who are experiencing a payment shortfall.
They are also consulting on related guidance.
The CML have now responded to this call for evidence and we support the view that any payment received from a customer with a payment shortfall is allocated solely to reduce the payment shortfall and/or to pay the current monthly instalment, until the payment shortfall balance has been cleared.
The full CML response can be downloaded below.