Lending Standards Board increases threshold level to protect more businesses
Industry News | 16/07/19
The Lending Standards Board (LSB) has increased the threshold of the Standards of Lending Practice for business customers (the Standards), two years after the launch of the Standards which applied to businesses with a turnover of £6.5m. The Standards will now protect businesses with a turnover of up to £25m, bringing consistency in treatment of SMEs. In addition to the extended turnover threshold, the existing section on financial difficulty has been developed to include a set of Standards focussing on treatment of customers in business support units. This extension initially covers core products; loans, overdrafts, credit cards and charge cards, and the LSB will be working to extend the Standards of Lending Practice for business customers – Asset Finance in due course. The extended Standards will become effective on 1 November and the current Standards remain in place until this date.