Debt advice helps half of borrowers as 7.4m struggle with cost of living

Firms in the lending, consumer credit and mortgages sector are being reminded of the new rules and guidance taking effect on 4 November - as data shows that nearly half of people who seek help with problem debt have been assisted by the advice they receive.

By Neasa MacErlean

The Financial Conduct Authority has published the latest results of itsFinancial Lives surveyalongside a confirmation of PS24/2 'Strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages' and FG24/2 'Guidance for firms supporting their existing mortgage borrowers impacted by the rising cost of living'. The rules expand protections from the FCA's Tailored Support Guidance to include consumers who are at risk of having payment difficulties, beyond those who have already missed payments. The guidance is also being expanded but goes beyond the TSG by, for instance, covering the determination of 'necessary and reasonable' costs by lenders in setting fees and charges.