Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what representations he has received on the effectiveness of affordability checks in place by rent-to-own lenders.
Treasury ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery. This includes regular meetings with the Financial Conduct Authority (FCA) to discuss relevant regulatory issues.
The FCA requires all consumer credit firms to conduct appropriate affordability checks, and in July 2017 it consulted on new rules and guidance on creditworthiness assessments, to clarify that firms must consider whether a customer can afford to repay without causing financial distress. A final policy statement is due later this year.
The FCA is also conducting a review of the high-cost credit market, including rent-to-own. The FCA will publish an update later this month