DMP Affordability Assessment (CONC 5) Scams.

Regulatory Definition for DMPScams.com

Affordability Assessment is the legal requirement under FCA CO. This includes checking income, essential spending, existing debts, and NC 5, which forces lenders to check whether a borrower can realistically afford the credit without falling into financial difficulty, and whether the repayments would cause hardship.

What it really means (plain English)

Before giving you a loan, credit card, catalogue, overdraft, or any regulated credit, the lender must confirm:

• You can afford the repayments from real disposable income, not from benefits meant for essential living
• The repayments won’t push you into arrears, borrowing more, or missing bills
• The credit is sustainable, not just “possible if you struggle.”

If they didn’t do this properly, the lending may be classed as irresponsible.

Why it matters in a DMP

If a lender failed to carry out a proper affordability check, you may have grounds for:

• Irresponsible lending complaints
• Refunds of interest and charges
• Balance reductions
• Removal of negative markers
• Stopping the debt chase until the complaint is resolved

This is especially important for people who were:

• On benefits
• In zero‑surplus situations
• Already in financial difficulty
• Borrowing repeatedly to survive

The DMP Scam Angle

Many people end up in DMPs because lenders ignored CONC 5. The debt shouldn’t have existed in the first place — and the DMP adviser often never checks this.

This is why DMPScams highlights it: If the lending was unaffordable, the debt may be partially or fully refundable.