Understanding the problem
Independent debt advice can help a consumer with several obligations assess essential expenditure, priority debts and sustainable choices. A lender's own collections employee is not automatically an independent adviser. A referral should identify a genuine service that can assist in the appropriate jurisdiction. A referral does not mean that the borrower is insolvent or automatically cancels their repayment duties. Record the specific credit agreement, responsible legal entity and applicable jurisdiction before applying a procedure. The same customer experience can have different legal consequences under a regulated instalment loan, an overdraft or a mortgage. Avoid substituting internal service standards for binding requirements. A dated rule-to-control map helps staff identify when specialist review is necessary and which evidence they must retain.
Applicable regulatory duties
UK firms must assess applicable FCA CONC 7 rules and any requirements concerning information and treatment of customers in payment difficulty. Verify the particular binding obligation rather than treating every reminder as legally requiring the same referral. Staff should avoid acting beyond their authorisation when discussing regulated debt advice. Make clear which assistance the creditor itself can offer. A policy statement is not proof that a consumer was treated fairly. Case notes should show what information was actually available to staff, which legally relevant circumstances they considered and how the resulting decision was communicated. Distinguish binding rules from regulatory guidance, including any national provisions applicable to the agreement. Oversight should cover outsourced servicing and technology-driven contact as well as in-house casework.
Accessible customer communication
Referrals should be useful in practice, including an accessible route for people who cannot use a website or who need language or disability support. Confirm the service is independent, available and relevant to the consumer's jurisdiction. Do not reproduce an obsolete helpline or invent an authority. The consumer should be able to understand whether advice is free and what information they may wish to prepare. Contact controls should consider the consumer's ability to respond and understand information. An unanswered message may reflect an accessibility problem or incorrect address rather than unwillingness to engage. Test communications across available channels, including failures of digital authentication. Keep the record sufficiently clear that another trained reviewer can identify the purpose, timing, sender and the actual next step.
Individual assessment
An adviser may present a financial statement or propose reduced payments. The creditor should evaluate the proposal against accurate balances and applicable forbearance obligations rather than accepting or rejecting it automatically. Requests about disputed sums must be resolved separately. Consider whether a short-term arrangement would leave an unaffordable final balance and explain material costs. A review of circumstances must be proportionate to the decision. Avoid gathering unnecessary sensitive information while ensuring financial figures and account history are reliable. A repayment proposal should not be accepted solely because it fits a standard template if it appears unlikely to be sustained. Record available alternatives, expected impact on future payments and why a different choice was not suitable.
Servicing and operational controls
Obtain appropriate authorisation before sharing account information with a representative. Record the scope of permission, communication preferences and any requested changes. A creditor should not force repeated disclosure of financial difficulty without justification. Referral records should be distinguished from decisions about repayment terms, complaint resolution and formal statutory notices, each of which may have separate obligations. Operations teams should connect the decision with actual account servicing. A corrected balance, agreed payment reduction or changed communication preference must flow through the systems generating statements and reminders. Test for contradictory letters and duplicate demands. The staff member responsible for a decision needs access to the relevant past contacts and a route to escalate matters beyond their authority.
National law and CCD2 transition
The revised CCD2 includes an EU framework concerning debt advisory services and reasonable forbearance. National measures generally apply from 20 November 2026. Whether a firm must signpost particular services and which organisations qualify must be checked in the actual Member State implementing measures. Existing UK CONC duties are a separate framework and cannot simply be copied into EU policy. Changes to EU law and domestic regulation require controlled review. Identify which obligations apply now and which national implementing measures are expected later. The CCD2 national application date does not itself settle product scope or transitional rules. Keep UK FCA requirements distinct from EU Member State frameworks and avoid claims that a consumer can demand an identical concession in every country.
Evidence, testing and review
Test an adviser contacting the wrong account, expired authority, customers with multiple creditors and consumers unable to access online-only referral routes. Retain which contact details were provided, how the consumer responded and whether an arrangement or follow-up was needed. Audit referral information periodically to avoid misleading customers with outdated resources. Quality assurance should include ordinary cases and edge cases, not only successful resolutions. Review errors in payment allocation, contact frequency, representative authority, changing customer circumstances and escalations. Preserve documents as they stood at the relevant time. Where failures recur, assign a corrective action to a responsible owner and verify that the modified process works.
Frequently asked questions
Do the same rules govern all EU consumer credit products?
No. Assess the agreement, national law and applicable regulatory scope.
Does a request for support automatically cancel a debt?
No. The balance and applicable response must be assessed separately.
Primary sources
FCA Handbook CONC 7 ↗FCA Handbook DISP ↗Directive (EU) 2023/2225 ↗Read the source in its current version. National implementing measures and product-specific applicability may require additional research.