Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of introducing a limit on the number of times creditors can contact people in debt.

The Government and the Financial Conduct Authority (FCA) expect financial services firms to take whatever steps they can to support and provide appropriate level of care to their customers. This includes offering tailored support to customers struggling to pay their mortgage or other loans.

In June 2022, the FCA published ‘Dear CEO’ letters to firms and reiterated the FCA’s expectations on firms dealing with borrowers in financial difficulty. This includes expectations on firms to provide appropriate level of care and support to their customers; to give borrowers in financial difficulty appropriate tailored forbearance that is in their interests taking account of their individual circumstances; and to support borrowers showing signs of financial difficulty or struggling with debt, by making them aware of and helping them access money guidance or free debt advice.

More recently, the FCA published findings from their comprehensive review of firms’ treatment of borrowers in financial difficulty following the pandemic and is taking action to ensure high standards.

To help people in problem debt, the Government launched the Breathing Space scheme in England and Wales in 2021. The scheme gives eligible people in problem debt who receive professional debt advice access to a 60-day period in which enforcement action is paused and most fees, charges and interest are frozen.