The Financial Ombudsman Service (FOS) has announced that it will now investigate complaints from borrowers who cannot afford their repayments.
They will investigate any complaints against lenders to ascertain whether the firm conducted an adequate assessment of the credit risk to the firm and the affordability risk to the borrower.
In August, FOS published updated guidance for businesses about resolving complaints about the affordability of borrowing. The guidance explains the types of complaints they receive, the questions asked when investigating firms and the ways they suggest putting things right if they decide a borrower has been treated unfairly.
Following the above guidance, the Financial Ombudsman has added this document to its resources for people who think they have borrowed money and think they might have a complaint.
If you are a lender and would like any advice on how this may affect you, please fell free to contact us on 01423 522599 or email info@thecompliancecompany.co.uk.