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ARREARS
CHARGING
ASSURANCE

Can you evidence that your arrears charging approach delivers fair and sustainable customer outcomes?
 
Explore our practical six-step assurance framework for motor finance firms, designed to help you assess your charging approach, identify potential gaps and evidence the customer outcomes being delivered.
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ACCESS THE assurance framework

Download our practical Arrears Charging Assurance Framework to assess your current approach across six key areas, from cost justification and fair value to operational controls, customer outcomes and governance.

Use the detailed assurance questions, four-level maturity model and evidence and action plan to identify gaps, assess your current position and agree your next steps.

FAQ

Frequently Asked Questions

What is the Arrears Charging Assurance Framework?

The Arrears Charging Framework is a practical tool designed to help Motor Finance firms assess whether their charging approach is appropriately designed, controlled and delivering fair and sustainable customer outcomes. It combines assurance questions, a maturity model and an evidence and action plan to help firms challenge and evidence their approach.

Who is the framework designed for?

The framework is designed for Motor Finance firms whether they currently apply arrears charges or are considering introducing or changing their approach. It can be used to assess an existing charging model or to understand the rationale, controls, customer considerations, assurance and governance that would need to be in place before implementing a new approach.

What areas does the framework assess?

The framework covers six areas; rationale and cost justification; Fair Value and customer impact; financial difficulty and vulnerability; operational controls; outcome testing and assurance, MI, governance and accountability. Together, they provide an end-to-end view of the design, operation and oversight of an arrears charging approach.

Can I use the framework if we don't currently charge arrears fees? Yes. The framework isn't limited to assessing existing charging models. It can also be used to support the design and assessment of a potential future approach, helping firms consider cost justification Fair Value, customer impact, financial difficulty and vulnerability, operational controls, outcomes testing and governance before implementation.
How can I use the framework to assess my current approach?

Work through the assurance questions and supporting evidence across each of the six years, then assess your position against four maturity levels: Defined, Controlled, Evidenced and Embedded. The Evidence & Action Plan can then be used to capture strengths, gaps and priority actions.

Is the framework a regulatory standard? No. The framework is a Map Room assurance tool informed by relevant regulatory expectations, market practice and our Motor Finance benchmarking. It is designed to support structured challenge and assessment rather than replace a firm's own regulatory, legal or compliance judgement.
What if the assessment identifies gaps? A gap doesn't necessarily mean the charging approach is inappropriate. It may identify where the rationale, evidence, controls, testing or oversight could be strengthened. The framework can be used to prioritise those areas and establish clear actions for improvement.