View more on these topics

CFO Lending suspends outbound debt collection

A payday lender has agreed to carry out a past business review and suspend all outbound debt collection activities after the FCA raised serious concerns about its systems and practices.

In a voluntary agreement between the regulator and CFO Lending published last week, the FCA said it was concerned the lender has misused banking information provided by customers to repay outstanding debts.

CFO Lending has to carry out a skilled persons report, also known as a section 166 report, which the regulator uses to check for weaknesses in a firm’s systems. It will also have to set up a consumer redress scheme. The FCA says there have been systems errors relating to the automatic calculation of customers’ balances, leading to customers’ outstanding loan balances being incorrect.

The regulator also has concerns that CFO’s communications to customers, its debt collection training materials and staff incentive schemes are not compliant with its rules.

It says it is concerned these practices prioritise the collection of money over fair treatment of its customers, particularly those who are vulnerable.

The FCA took over the regulation of the consumer credit market from the Office of Fair Trading on 1 April. CFO ceased to provide payday loans from 19 May, but continues to collect outstanding debts.



60 Seconds with…Matthew Yates, BDM, NatWest Intermediary Solutions

Last week, Mortgage Strategy ran its first quarterly feature ranking the top-10 intermediary lenders over the past three months, with NatWest Intermediary Solutions taking top spot. What do you feel the bank has done differently to others to achieve this? We have focused on getting our service right. We have a business that is dedicated […]


Caption Competition – 27 August 2014

Fancy a spot at this year’s biggest financial services networking event? Mortgage Strategy is offering the caption competition winner a chance to sit at our table at the Well Child Financial Services Race Day at Goodwood Racecourse. All you have to do is submit a witty caption for the photo above and you will automatically […]


CII sets up level four advice exam online

The Chartered Insurance Institute has launched a level four certificate in advanced mortgage advice. The CII’s new qualification goes beyond the FCA’s minimum exam standards, which is set at level three.  Advisers holding the CII level three certificate are only required to complete the new advanced module, called RO7, to gain level four status. Those […]


News and expert analysis straight to your inbox

Sign up

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now