New code brings commonsense to lending - FSF

The new code is the guidance  part of the Government’s changes to the Credit Contracts and Consumer Finance Act.

The government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections.

Under the first phase of the reforms, lenders will still have to act responsibly and ensure lending will not cause hardship but they will not have to follow a prescriptive, one-size-fits-all process.

The government has also improved dispute resolution to better protect consumers; exempted councils from the Credit Contracts and Consumer Finance Act (CCCFA) so they can offer low-risk financial products to help households improve their energy efficiency by installing heat pumps and insulation; and removed duplicate reporting requirements.