On Jan. 27, 2025, UK LSB confirmed the Standards of Lending Practice for personal customers (the personal Standards), which have pioneered an outcomes-focused approach to consumer lending protections since 2016, will be retired on Mar. 31, 2025.
This decision follows a full review of these personal Standards, as carried out in 2024.
The review found, following recent changes in the statutory framework, particularly the introduction of the UK FCA’s Consumer Duty in 2023, there is now considerable overlap in coverage between the personal Standards, and the various statutory regulations.
While personal Standards will be wound down, UK LSB’s efforts to challenge financial services sector to deliver better outcomes for their personal customers will continue.
Review identified demand from stakeholders for UK LSB to provide support in areas where personal Standards had an impact on customer outcomes, and where firms may require more support beyond Consumer Duty as they consider right outcome delivery.
UK LSB will develop new guidance for firms in key areas relevant to personal financial services customers, including areas in the review where firms do benefit from support.
UK LSB will also roll out customer outcome testing and benchmarking activity designed to allow firms to track the impact of their efforts to meet best practice, and to improve.
UK LSB chief executive, Emma Lovell, commented UK LSB has extensive experience of how firms can deliver better outcomes for customers, and to protect them from harm.
While introduction of Consumer Duty expanded the scope of the statutory regulatory framework, we know there is more UK LSB can do to support firms, and customers.
On Oct. 17, UK LSB will consult to update lending practice standards.
UK LSB has been speaking to registered firms and other stakeholders about plans to ensure that Standards of Lending Practice for personal customers stay up-to-date.
The personal Standards marked a major milestone in consumer lending protections when introduced in 2016, set benchmark for good lending practice across UK.
Apply across digital, branch and telephony networks, protections cover overdraft, credit card, charge card and unsecured loan products and services to customers.
Signing up to and adhering to Standards signals firm's commitment to fair outcomes.
Consultation
As the financial services sector and wider landscape evolves, it is an important time to consult on the Standards to ensure they continue to add value for consumers.
Firms that would like to input into consultation to email UK LSB to register interest.
Jan. 2025 Feedback and Next Steps
On Jan. 27, 2025, UK LSB confirmed the Standards of Lending Practice for personal customers (the personal Standards), which have pioneered an outcomes-focused approach to consumer lending protections since 2016, will be retired on Mar. 31, 2025.
This decision follows a full review of these personal Standards, as carried out in 2024.
The review found, following recent changes in the statutory framework, particularly the introduction of the UK FCA’s Consumer Duty in 2023, there is now considerable overlap in coverage between the personal Standards, and the various statutory regulations.
While personal Standards will be wound down, UK LSB’s efforts to challenge financial services sector to deliver better outcomes for their personal customers will continue.
Review identified demand from stakeholders for UK LSB to provide support in areas where personal Standards had an impact on customer outcomes, and where firms may require more support beyond Consumer Duty as they consider right outcome delivery.
UK LSB will develop new guidance for firms in key areas relevant to personal financial services customers, including areas in the review where firms do benefit from support.
UK LSB will also roll out customer outcome testing and benchmarking activity designed to allow firms to track the impact of their efforts to meet best practice, and to improve.
UK LSB chief executive, Emma Lovell, commented UK LSB has extensive experience of how firms can deliver better outcomes for customers, and to protect them from harm.
While introduction of Consumer Duty expanded the scope of the statutory regulatory framework, we know there is more UK LSB can do to support firms, and customers.
