Among the documents that the Government published last December as part of its Edinburgh reforms was a consultation paper on reforming the UK’s Consumer Credit Act 1974. We have published a new briefing note on the consultation paper which can be found here.… Continue Reading
In this podcast, Matthew Gregory and Simon Lovegrove discuss HM Treasury’s final consultation on the proposed legislative changes to bring currently unregulated buy-now-pay-later products into scope of the UK Consumer Credit Act 1974, and FCA regulation.… Continue Reading
Introduction HM Treasury has now released its final consultation on the proposed legislative changes to bring currently unregulated buy-now-pay-later (BNPL) products into scope of the UK Consumer Credit Act 1974, and FCA regulation. These proposals, together with the earlier consultation documentation and responses from HM Treasury set out a new, proportionate regulatory framework for BNPL … Continue Reading
On 2 December 2022, the European Commission announced that it welcomed the provisional political agreement reached between the European Parliament and the Council on the proposed revised Consumer Credit Directive. The European Parliament and the Council now need to formally adopt the political agreement.… Continue Reading
On 12 July 2022, the European Parliament published compromise amendments on the draft report on the Proposal for a Directive of the European Parliament and of the Council on consumer credits. Overall, MEPs want better protection for consumers applying for loans online. The new EU rules aim at protecting consumers online from credit card debt, … Continue Reading
On 27 June 2022, the FCA published a Dear CEO letter concerning its supervisory strategy for the Debt Advice portfolio. The letter follows an earlier letter published in July 2020, and: Provides an update on the key risks that the FCA has identified that debt advice firms pose to their customers and the markets in … Continue Reading
Introduction On 20 June 2022, HM Treasury published the government’s response to its October 2021 consultation on the regulation of Buy-Now Pay-Later (BNPL) products. The consultation was preceded by an announcement from the government in February 2021, indicating that it wanted to bring unregulated interest-free BNPL products within the scope of regulation given the potential … Continue Reading
On 16 June 2022, the government announced that it would be reforming the Consumer Credit Act 1974 and move much of the Act from statute to the FCA Handbook. The reforms will build on the recommendations of the FCA’s retained provisions report and the Woolard Review – which both made recommendations for a reformed regime. … Continue Reading
On 17 November 2021, the FCA published Consultation Paper 21/30 ‘Debt packagers: proposals for new rules’ (CP21/30). The proposals in CP21/30 applies to debt packager firms and appointed representatives who act as debt packagers. The FCA proposes banning debt packager firms from being paid to refer customers to other firms. This proposal is intended to … Continue Reading
On 21 October 2021, HM Treasury issued its long anticipated consultation on the regulation of Buy-Now Pay-Later (BNPL) products. Background In February the government announced its intention to bring unregulated interest-free BNPL products within the scope of regulation given the potential risk of consumer detriment highlighted in the Woolard Review. Following the announcement the government … Continue Reading
On 8 October 2021, the FCA published a speech by Nisha Arora (Director of Consumer and Retail Policy, FCA) entitled Regulating for better outcomes – next steps in consumer credit. Key points in the speech include: It’s never been more important that the consumer credit market works well for consumers, firms and the economy. The … Continue Reading
On 24 May 2021, the FCA updated its consumer credit information sheets in accordance with the Consumer Credit Act 1974 (section 86A). The FCA has specified that these will come into force on 25 October 2021 in accordance with section 86A(7) of the Act. The FCA has changed the information sheets to provide more targeted … Continue Reading
On 12 May 2021, the FCA announced that it was asking regulated firms that hold the credit broking permission to complete a short survey to update the information the regulator holds on how they are using this permission. The FCA believes that it should be possible for firms to complete the survey within 30 minutes. … Continue Reading
On 13 April 2021, the FCA issued a short statement on its website reminding firms about changes certain consumer credit firms will have to make to pre-contract consumer credit information forms. These changes will need to be made from 1 June 2021. If they are not made, the credit agreement may only be enforceable against … Continue Reading
On 2 December 2020, the FCA published an evaluation of its price cap on rent-to-own (RTO) products, which came into force in April 2020. The evaluation shows that the price cap has been effective in reducing the prices charged by RTO firms. The FCA estimates that the cap led to an average fall in prices … Continue Reading
On 2 December 2020, the FCA published a letter it had sent to the board of directors of firms assigned to the mainstream consumer credit lenders portfolio. In the letter the FCA: Sets out its view of the risks mainstream consumer credit lenders may pose to their consumers or the markets in which they operate. … Continue Reading
On 19 November 2020, the FCA confirmed updated guidance to firms setting out enhanced support that should be available to consumer credit customers experiencing payment difficulties as a result of the COVID-19 pandemic. The guidance covers users of personal loans, credit cards, store cards, catalogue credit, rent to own, buy now pay later, pawn broking, … Continue Reading
On 11 November 2020, there was published on legislation.gov.uk The Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020 together with an explanatory memorandum. The Consumer Credit Act 1974 (the Act) created a consumer protection regime, which required creditors or owners to send notices to borrowers or hirers under regulated agreements before taking … Continue Reading
On 2 November 2020, the FCA issued a call for input seeking views into how the unsecured credit market is changing, particularly in light of the COVID-19 pandemic, and how regulation can support this market. The call for input is focussed on the following four key themes: Drivers and use of credit. The FCA has … Continue Reading
On 13 October 2020, the FCA published a speech by Nisha Arora (Director of Consumer and Retail Policy) entitled FCA regulation of consumer credit – during the pandemic and beyond. Key points in the speech include: In all the FCA’s work to protect consumers in credit and other markets, it is guided by the Principles … Continue Reading
In April 2020 the FCA published temporary guidance setting out how it expects firms to support consumer credit and overdraft customers who were facing temporary payment difficulties because of the exceptional circumstances arising out of coronavirus. This guidance was updated in July (the July Guidance). On 31 July 2020, the FCA published a Call for … Continue Reading
On 16 September 2020, the FCA announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market. The review will concentrate on how regulation can better support a healthy unsecured lending market. It will take into account the impact of the coronavirus pandemic on employment security and credit scores, … Continue Reading
On 6 August 2020, the FCA published the findings of its review into relending by firms that offer high-cost credit. The review, which was completed prior to the coronavirus pandemic, highlights concerns about poor practices by some firms and notes that nearly half of consumers regretted borrowing more money. As firms in this sector begin … Continue Reading
The COVID-19 pandemic is continuing to present challenges across the board with regional lockdowns, closures of “air-bridges” and talks of a second wave dominating media outlets at the present time. If the pandemic has brought certainty in one regard, it is that the future is more uncertain than ever. In order to help provide further … Continue Reading
