Responding to suggestions that all lenders may be required to compensate customers, Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, which represents some of the best known short-term lenders explained:
“It would be wrong to assume that all lenders’ affordability assessments have fallen short of the mark. Every firm operates differently and has distinct business models. CFA members are subject to the same laws as all credit providers and there is no suggestion that they have acted illegally. The OFT/FCA rules on affordability are open to interpretation but we are not aware that any CFA members are facing challenges about previous lending decisions.
“Our members work closely with the regulator to ensure their business processes, including affordability assessments, complied not only with the CFA’s own voluntary Code of Practice which paved the way for the FCA’s new rules, but also with the new statutory regulation. Therefore any decision to make compensation payments is down to each company and they will assess individual claims on case by case basis.”