HLP Compliance Blog

Debt Consolidation

During 2016 the FCA has taken a special interest in debt consolidation and networks have been involved in a thematic review. This is hot on the heels of the Mortgage Credit Directive (MCD) implementation and is a process through which the regulator has been looking specifically at permissions, advising on debt consolidation and debt counselling.

HLPartnership extends the relevant Consumer Credit permission to Partner Advisers to enable debt consolidation discussions to take place. These permissions are limited for the purpose of mortgage broking, taking the network out of any potential scope for Debt Management services, which we have no interest in being involved in.

It is really important for mortgage advisers in the network to understand what these limitations mean and how to remain on the right side of the law. We have produced a helpful update which explains the background, the difference between debt counselling and debt management and how to stay safe. You can read the update here.

Whilst we have been doing this we have also been looking at the procedures and we will clarify the process expected for debt consolidation mortgages next week.

Read more:

Compliance Q & A, 15th September, 2016.

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