H&T Group PLC FCA review (6582T)
November 18 2019 - 2:00AM
UK Regulatory
TIDMHAT
RNS Number : 6582T
H&T Group PLC
18 November 2019
18 November 2019
H&T Group plc
FCA review
H&T Group plc ("H&T" or the "Group"), the UK's leading
pawnbroker, today announces that it is working closely with the FCA
following a regulatory review of certain aspects and files of its
high-cost short term credit ("HCSTC") unsecured loans business.
This review is focussing on H&T's creditworthiness assessments
and lending processes for HCSTC loans, in light of changes to the
Consumer Credit Sourcebook (CONC) rules regarding affordability
assessments implemented in November 2018 and the Dear CEO letter
issued to all HCSTC firms by the FCA in October 2018.
H&T is committed to providing a service that maintains the
highest standards of affordability whilst avoiding any customer
detriment. H&T is working with the FCA in a collaborative
manner to ensure the Group's policies, practices and procedures are
reflective of this approach. The review is ongoing and will result
in changes to these policies and procedures surrounding H&T's
provision of unsecured HCSTC loans. The Group has ceased all HCSTC
unsecured lending, at least temporarily, as it works through this
review process with the FCA. In the year to December 2019 H&T
expects that the proportion of revenues in the HCSTC unsecured
lending segment is less than 4%.
H&T will be working with a Skilled Person to review our
historical lending, implementation of our revised processes and
practices and to determine therefore whether any customer redress
is payable. H&T is looking at the HCSTC unsecured lending
practices over the past 6 years as part of this review. The average
HCSTC unsecured portfolio over the period has been GBP3m with a
peak in December 2016 of GBP4m and has now reduced to GBP3m. There
were total customer interest payments of GBP24m over this period.
Revenue less impairment over this period totalled GBP11m.
In the light of the FCA and Board's review, should any redress
be payable, H&T anticipates being able to fund this from its
existing financial resources.
The Board confirms that this aside H&T continues to trade
well and in line with the dynamics set out in its statement of 30
September 2019.
- ENDS -
For further information, please contact:
H&T Group plc
Tel: 020 8225 2797
John Nichols, Chief Executive
Richard Withers, Interim Finance Director
Numis Securities (Broker and Nominated Adviser)
Tel: 020 7260 1000
Luke Bordewich - Nominated Adviser
Oliver Cox
Haggie Partners (Public Relations)
Tel: 020 7562 4444
Damian Beeley
Caroline Klein
Vivian Lai
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END
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