Share on:

Policy and Government

Fair treatment of mortgage customers in payment shortfall: impact of automatic capitalisation

calendar18 January 2017

The Financial Conduct Authority (FCA) estimates that 750,000 mortgage customers have been impacted by automatic capitalisation - when arrears are included in contractual monthly installment (CMI) calculations but also pursued separately through a collections process. This results in customers effectively making overpayments and could have caused problems where this was unaffordable. The FCA have issued guidance which we welcome to address this issue and compensate those that have been affected. We have responded to stress the importance of communicating this complex issue well and suggested stronger guidance where possession orders (POs) have not been exercised. Read our full response below.

Read the full document here

Latest news and blogs

Roy’s story: debt help without judgement

Guest writer Roy sought help from CAP in 2018. Now debt free, he reflects on the journey.
Blog | Wednesday, 15 September 2021

Enduring hope: holding on to hope no matter what life throws at you

Hope is more than just a feeling. So how do we hold on to it in dark times?
Blog | Thursday, 02 September 2021

7 easy ways to make the summer last longer

Some family-friendly ideas to help you make the most of the coming autumn and winter months.
Blog | Tuesday, 24 August 2021