The Financial Conduct Authority (FCA) are consulting on proposed guidance that sets out their interpretation of the law in relation to guarantor loans.

Why are they publishing this guidance?

In February 2016 the FCA published a guidance consultation (GC16/2) which set out how they will interpret provisions of the Consumer Credit Act 1974 (CCA) regarding the enforcement of security in the context of guarantor loans and whether this requires a default notice under the CCA.

They are now publishing a further guidance consultation in the light of responses to GC16/2.

Who does this affect?

This guidance is relevant to firms which offer guarantor loans, consumers and other interested stakeholders.

Whilst this guidance will not be binding on firms, the FCA will take it into account in deciding whether a firm has followed the law and whether any supervisory or enforcement action is warranted.

Read the guidance paper here

Guidance consultation 16/7 – Revised proposed guidance on guarantor loans

Please send your comments by email to toby.watkinson@fca.org.uk. Alternatively, send them by post to:

Consumer Credit Policy, Strategy & Competition Division

Financial Conduct Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

All comments must be received by 25 November 2016.