In this speech which was published on Friday, Charles Randell, Chair of the FCA, outlines the potential impact of an economic downturn on UK residents, and reinforces the FCA’s expectations about what financial firms should be doing to prepare for the next downturn, regardless of when it comes.

In a severe downturn there would of course be an increase in the number of people who can’t pay their bills and therefore fall into debt, and lenders will still need to treat them fairly, even if increased arrears are putting them under pressure.

Charles talks about the FCA’s continuing focus on firms’ compliance with its requirements on affordability and arrears handling, and how he expects firms to focus on these issues too. He also mentions that the FCA will “have a low tolerance for firms who fall short of our standards in these areas”.

Being the first major debt recovery law firm to be granted full FCA authorisation has ensured that quality, compliance and treating customers fairly have all been high on our agenda for many years. We’ve also been planning for every possible outcome, ensuring we can respond quickly to any economic changes so that our clients - and their customers - can continue to rely on us.