The Lending Standards Board’s oversight and wider work play a crucial role in driving best practice across the financial sector. Amid an evolving regulatory landscape, we know our work must evolve too.
That is why we have been speaking to our registered firms and other stakeholders about our plans to adapt to ensure that our Standards continue to add value and much needed protections for consumers and SMEs.
A key step in this process is our consultation on the Standards of Lending Practice for personal customers (‘the personal Standards’), and the role they play now and in the future. This consultation is a chance for stakeholders to make a valuable contribution to the future of best practice in the financial services sector.
A successor to the Lending Code, which was launched in 2009, the personal Standards marked a major milestone in consumer lending protections when introduced in 2016. They set the benchmark for good lending practice in the UK, and apply across digital, branch and telephony networks. Their protections cover overdraft, credit card, chargecard and unsecured loan products and services provided to customers. Signing up to and adhering to the Standards signals a firm’s commitment to delivering fair outcomes for their customers.
The LSB’s Standards and Codes, including the personal Standards, have led to significant improvements in customer outcomes since their introduction. Over the last three years, the LSB has identified over 400 breaches of all our Standards and Codes, with our registered firms taking action to resolve these. Our wider work in support of the personal Standards has helped build a more inclusive financial services sector. For example, our 2023 report on access to finance for deaf customers – and the recommendations for change – prompted accessibility improvements across the financial services sector, and kick-started sector-wide collaboration on this issue.
The success of the financial services sector depends on its ability to maintain – and enhance – customers’ trust and confidence. The personal Standards have helped build that trust and foster a more inclusive industry, providing dedicated frameworks to support the identification and fair treatment of vulnerable customers or those at risk of financial difficulty, while allowing firms to continue to innovate, be competitive, and to deliver unique products and services that meet the evolving needs of consumers.
As the financial services sector and wider landscape evolves, it’s an important time to consult on our Standards to ensure they continue to add value. This is a chance to have your say. If you would like to input into this consultation process please email us to register your interest, at personalstandardsreview@lstdb.org.uk and we will be in touch.
