FCA publishes “Dear Chair” letter

The FCA has published a “Dear Chair” letter as a result of its review into SME collections and recoveries.

The letter was written to all Chairs of retail banks with SME customers to make sure the issues raised are given the appropriate attention at both board and executive level. The FCA urges action on fair treatment of SMEs during collections and recoveries in light of rising cost of living affecting both consumers and small businesses. The letter highlights their concerns and expectations.

 Dear Chair letter applies to:

• Retail banks with regulated SME lending

• All regulated firms offering lending to individuals and relevant recipients of credit (“RRCs”)

The FCA found several instances of poor practices in customer services.  As a result it is urging the whole sector to take action. Where borrowers are treated as if they have a regulated credit agreement, either by requirement or voluntarily, the FCA states that firms should be able to demonstrate they are meeting a comprehensive list of standards.

Auxillias can support its clients in a number of ways to meet with the FCA’s expectations including conducting gap analyses, drafting update policies and procedures, reviewing quality assurance processes, providing training sessions and conduting regular audits. Contact us for more information.