PS24/2: Strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages

Read PS24/2 (PDF) [2]

What we are changing

We want to build on our Tailored Support Guidance (TSG) and provide a stronger framework for firms to protect customers facing payment difficulties. We are doing this by incorporating relevant aspects of our TSG for Consumer Credit, Mortgages and Overdrafts into our Handbook, as well as introducing further targeted changes.

Alongside this, we have updated our non-Handbook guidance (FG23/2[3]) to reflect these changes. The updated FG24/2[4] will replace FG23/2 with effect from 4 November 2024.

Who this is for 

This PS will primarily affect: 

• consumer credit lenders (including MCD article 3(1)(b) lenders) 
• premium finance firms
• mortgage lenders and administrators
• home purchase providers and administrators
• firms who carry out activities in relation to consumer hiring, operating an electronic system in relation to lending (in relation to a borrower under a P2P agreement) or debt collecting 
• consumer credit and mortgage lenders in supervised run-off under the financial services contracts regime
• Gibraltar-based consumer credit and mortgage lenders passporting into the UK 

Next steps 

The rules come into force on 4 November 2024 and we will withdraw the TSG at the same time.

Background 

During the pandemic we introduced our TSG for Consumer Credit, Mortgages and Overdrafts. This made clear how firms could support customers in financial difficulty.  Since then, consumers have faced increased financial challenges due to the rising cost of living.

In May 2023, we consulted on rules to strengthen protections for mortgage, consumer credit and overdraft customers in financial difficulty (CP23/13[5]). This consultation included proposals to incorporate aspects of our coronavirus TSG into our Handbook, as well as further, targeted changes to support customers in financial difficulty.