New FCA consumer credit information sheets in use from 25 October

In May 2021, the FCA updated its webpage on consumer credit information sheets to announce the publication of revised information sheets relating to:

• arrears;
• default;
• high-cost short-term loans;
• high-cost short-terms loans, peer-to-peer lenders; and
• arrears, peer-to-peer lending.

Under section 86A of the Consumer Credit Act 1974, lenders are required to include a copy of the relevant information sheet when notifying a consumer that they are in arrears or default. The FCA has updated these sheets to provide more targeted and useful help to customers, particularly those with mental wellbeing issues.

Next steps

Firms must start using the new versions of the information sheets from 25 October 2021. Until then, current versions of the information sheets, which were published in 2018, must be used and are available on the same FCA webpage.

Authored by Virginia Montgomery