Consumer credit firms are required under CONC to carry out a creditworthiness assessment before entering into a regulated credit agreement. The assessment must consider the customer’s ability to repay without significant adverse effect on their financial situation, taking into account both affordability and credit risk.
We advise on the legal requirements for creditworthiness assessment, draft or review creditworthiness assessment policies and procedures, and advise on how the requirements apply to specific products and customer segments. We also advise on the documentation needed to evidence compliance.