Response to FCA's High-Cost Credit Review

RNS Number : 8080P

Non-Standard Finance PLC

31 May 2018

 

Non-Standard Finance plc

(the 'Company' or the 'Group')

Response to FCA's High-Cost Credit Review

31 May 2018

The Group has noted this morning's announcement by the Financial Conduct Authority ('FCA') detailing a number of proposed changes to the regulation of certain segments of the UK's consumer credit market, including home-collected credit (the 'Proposals').

Whilst the Proposals will require us to make some minor amendments to our operational procedures in home credit, there will be no impact on our two largest divisions, branch-based lending and guarantor loans.

We are pleased that the FCA has recognised the value of home credit to the consumers that use it and noted its comment that:

"Generally, consumers are mainly positive about using home‑collected credit. Many said that they would be significantly worse‑off if this line of credit were unavailable to them."

We do not anticipate that the Proposals will have a material impact on the Group's future financial performance. 

Commenting on today's announcement, John van Kuffeler, Group Chief Executive said:

"Whilst home credit is the smallest of our three divisions, we welcome the FCA's recognition of the important service that home credit provides to millions of UK consumers and look forward to a period of regulatory stability during which we intend to continue to build market share, whilst remaining at the vanguard of regulatory compliance and best practice."   

For more information:

Non-Standard Finance plc Peter Reynolds, Director, IR and Communications

[phone]

Notes for Editors

Established in 2014, Non-Standard Finance plc is listed on the main market of the London Stock Exchange (ticker: NSF) and is one of the UK's leading providers of unsecured credit to the 10-12 million UK adults that are either unable or unwilling to borrow from mainstream financial institutions.  Operating through three distinct divisions: branch-based lending, guarantor loans and home-collected credit, as at 31 December 2017 the Group had a total net loan book of approximately £248m (before fair value adjustments) and over 168,000 customers.  Each division has been fully authorised by the FCA and has benefited from significant investment in branch expansion, recruitment, training and new IT infrastructure and systems.

 

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