The voluntary standards came into effect in 2017 for loans, credit cards, overdrafts and charge cards. They aim to set a benchmark for good lending practice in the UK by outlining how companies should deal with personal and small business customers.
The LSB has now extended the standards to asset finance and commercial mortgage products.
The third rollout of the Standards of Lending Practice will be to P2P lending and invoice finance products.
There are currently 20 LSB-registered companies, who undergo a thorough risk assessment review process that looks at their controls and governance, and must ensure that the LSB’s standards are built into firm-wide policies. Newly registered companies are given help in achieving the standards.
As well as extending its remit to new products, a key focus of the LSB over the next 12 to 18 months will be resolving the issue of late payments in the small business sector.
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