Metrics Monthly Q2 | 22

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Employee spotlight

FCA expresses concerns for customers struggling with the cost of living

Claire Januszczak, Head of Sales

This quarter we are celebrating Claire's 10 year anniversary at LendingMetrics. Claire joined the company in June 2012 as an Accounts Manager and quickly progressed to Partner- ship and Business Development Manager. Since then, she has played a pivotal part in the company's success over the years, and now manages a small team as Head of Sales. She has attended countless con- ferences and awards, including the 2020 Credit Summit, which saw her record a 5-minute "power pitch presentation" for an audience of delegates from the industry, and helped grow our impressive client base to where it is today.

The Financial Conduct Authority (FCA) wrote to 3,500 lenders in June to remind them to provide appropriate support to borrowers struggling with the cost of living. The letters were sent to mostly con- sumer credit firms, retail banks and unauthorised Buy Now Pay Later pro- viders, and urged the firms to provide customers with the proper care and support in the wake of the cost of living crisis. This includes the recommenda- tion to only charge fees which are fair and cover the firm's costs. The FCA suggests these firms have better conversations with their custom- ers to fully understand the individuals' circumstances, and therefore be able to provide the most appropriate tailored support. The concerns followed on from the reg- ulator finding serious failings at more than 30 firms, mostly within the con - sumer lending sector. These lenders were found to not be directing borrow- ers in need to access free debt advice, therefore not providing the correct support to vulnerable customers.

Alongside offering support for existing customers, the firms are being encour - aged to consider how a new borrower's changing circumstances could impact their affordability, and how any finan - cial pressure they may face due to the cost of living crisis could impact their expenditure. Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said: 'Many consumers are feeling the impact of the rising cost of living in their personal finances and we expect this to increase over the next few months.' 'Early action is important for those struggling with debt. We need all firms to get the basics right and provide good quality support. Where we see more serious wrongdoing, we are already acting to ensure these firms improve. 'The financial services industry has a significant role in helping consumers manage their finances – and it should expect us to pay close attention to how they do that over the next few months.'

Above: Head of Sales Claire Januszczak recorded a presentation at the Credit Strategy studio for the Credit Summit 2020 conference

06 | Metrics Monthly

Q2 | 2022

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