The Lending Code currently addresses areas of banking practice which fall outwith the remit of (1) the Payment Services Regulations 2009 which implemented the Payment Services Directive (PSD) in the UK, and (2) the FCA's Banking Conduct of Business sourcebook (BCOBS). As the name suggests, the focus is largely on lending, and covers personal loans, credit cards and overdrafts. The Standards will continue that focus, and will direct the way that LSB registered firms are expected to deal with their customers.
The Standards cover six main areas:
- Financial promotions and communications
- Product sale
- Account maintenance and servicing
- Money Management
- Financial difficulty
- Consumer vulnerability
The LSB is currently working on business Standards of Lending Practice which it intends to launch in early 2017. The proposal is to extend these business standards beyond lending to micro-enterprises and cover lending to larger SMEs with an annual turnover of up to £6.5 million.