Source · Select Committees · Public Accounts Committee
Recommendation 18
18
HM Treasury explained to us that, at present, recoveries for the smaller loans are captured...
Conclusion
HM Treasury explained to us that, at present, recoveries for the smaller loans are captured and overseen by the FCA and, for larger loans, by the Lending Standards Board. Thus, although the details have not been clarified, there is already an existing structure regarding recoveries. In turn, it is the case that, if lenders do not pursue recoveries as expected, they will not be able to collect the guarantee.47 Measuring the Scheme’s impact
Government Response
Not Addressed
HM Government
Not Addressed
5: PAC conclusion: HM Treasury has not yet finalised the rules lenders need to follow to ensure overdue loans are repaid. 5: PAC recommendation: HM Treasury should ensure that the recovery rules are confirmed prior to repayment, and that they are uniform in their fair and thorough recovery of loans. 5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 The government has worked closely with UK Finance and accredited Scheme lenders to develop a consistent, industry-wide approach to the collection and recovery of the loans. Guidance has now been shared with accredited lenders by the Bank. In addition, the government has engaged with the Financial Conduct Authority and the Prudential Regulation Authority to ensure that the guidance aligns with the relevant regulations. 5.3 As the Committee will appreciate, it would not be appropriate to publish this guidance. To do so would notably risk educating criminals about the approach to the collection and recovery of loans, therefore compromising the processes by which lenders go about recovering funds.