FCA consults on treatment of customers in mortgage arrears

This guidance covers remediation for mortgage customers who may have been affected by the way firms calculate these customers' monthly mortgage payments. Jonathan Davidson, Director of Supervision - Retail and Authorisations, said: "Even if inadvertent, automatic capitalisation of arrears can lead to poor customer outcomes and firms need to put this right, and make sure the practice stops." The FCA has identified that some mortgage firms (lenders and administrators) have automatically included customers' arrears balances within their monthly mortgage payments which are recalculated fr...