NCR Affordability Assessment Guidelines

NCR Guidelines for granting credit

When a creditor wants to give a consumer credit, they need to figure out if the consumer can afford to repay that credit. If the consumer cant make the repayments and still cover their needs each month the creditor is granting “reckless credit”. The creditor could then lose out on that money of even be fined by the NCR.

The NCR have been pushing for a published set of guidelines that creditors should use to work out what a consumers basic living costs are and how much they can afford (how much credit they can afford to repay).

The NCR have recently released the attached guidelines for comment.

NCR AFFORDABILITY ASSESSMENT GUIDELINES DOWNLOAD: NCR Affordability Assessment Guidelines