In this guide
8. Arrears
Arrears are:
- outstanding management fees.
- outstanding interest payments; and/or
- any other outstanding amounts relating to any other charges or interest payments.
Our policy
Unregulated accounts - Although only some of the accounts under the scheme are FCA-regulated, we will treat non-regulated accounts with equivalent standards.
Consumer Duty & Treating Customers Fairly – Customers will be treated in accordance with the principles of Treating Customers Fairly, with due consideration given to forbearance and ‘breathing space’ as appropriate.
Verification - Before pursuing a customer for the repayment of arrears, we will take reasonable steps to verify the accuracy and adequacy of the data relating to the account in arrears to ensure that it only pursues the verified customer and for the correct amount.
Notification – Customers whose accounts go into arrears will be provided with information about the arrears before any attempts are made to recover them. Having been provided with suitable information about their arrears, customers will be provided with a reasonable amount of time in which to make good the arrears.
Signposting - When an account falls into arrears and the customer is experiencing financial difficulties, we will refer the customer to a source of free and independent debt advice.
Assessment - Where a customer is in arrears, we will take steps to understand a customer’s financial circumstances to determine a suitable arrears management plan.
Arrears management tools - A range of suitable tools will be made available to customers in arrears to be capable of addressing the various repayment issues that customers may face.
Default - A Default Notice will be issued to a customer 180 days after a Equity Mortgage goes into arrears where: there has been no engagement or co-operation from the customer; or the customer has not satisfied any arrears management agreements made. The Default Notice will provide 28 days’ notice to the customer to make good the arrears.
What it means to you
The overriding objective of arrears management is to help customers get back on track with their repayments. Our arrears policy means:
- You will be treated in essentially the same way as a customer with a regulated account, even if your account is not regulated.
- We will provide you with sufficient information about your arrears for you to understand the situation.
- We will provide you with sufficient time to make good your arrears.
- If you can’t make good your arrears in the short term, we will help you select a method of repayment to suit your circumstances.