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
On 28 July 2020, the FCA announced that following its earlier consultation in October 2019 it will introduce a ban on motor finance discretionary commission models. In the light of consultation feedback and the additional operational pressures which the motor finance sector is facing at present the FCA has agreed to give firms limited additional … Continue Reading
On 24 April 2020, the FCA published temporary guidance concerning: Motor finance agreements and coronavirus. High-cost short-term credit (HCSTC) and coronavirus: temporary guidance for firms. Rent-to-own, buy-now pay-later and pawnbroking agreements and coronavirus. On 3 July 2020, the FCA announced proposals to amend the above temporary guidance so to provide continued support for users of … Continue Reading
On 23 June 2020, the European Commission published a roadmap concerning a review of the Consumer Credit Directive (CCD). Following a REFIT Platform opinion recommending an assessment of the relevance, effectiveness and efficiency of the standard information to be included in advertising concerning credit agreements, the Commission evaluated the CCD in 2018-2019. The full results … Continue Reading
On 4 May 2020, the European Supervisory Authorities (ESAs) published joint draft Regulatory Technical Standards (RTS) to amend the Delegated Regulation on the risk mitigation techniques for non-centrally cleared over-the-counter derivatives (bilateral margining), under the European Markets Infrastructure Regulation, to incorporate a one-year deferral of the two implementation phases of the bilateral margining requirements. On … Continue Reading
Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our fourth video diary, Matthew Gregory discusses today’s FCA proposals (made … Continue Reading
Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our third video diary, Iain Hawthorn discusses the recent government announcements … Continue Reading
On 13 February 2020, the FCA published a letter setting out its views on the key risks credit brokers could pose to their consumers or markets. Credit brokers are asked to consider the extent of these risks in their business and assess if their strategies reduce the risks. The FCA explains that it has examined … Continue Reading
On 5 February 2020, the Goods Mortgages Bill (the Bill) had its first reading in the House of Lords. If the Bill becomes law it will repeal the Bills of Sale Acts 1878 and 1882 and create a new form of non-possessory security that may be created over goods owned by individuals. The Bill allows … Continue Reading
On 15 October 2019, the FCA published Consultation Paper 19/28: Motor finance discretionary commission models and consumer credit commission disclosure (CP19/28). In CP19/28 the FCA is proposing a ban on commission models where the amount received by the broker (including motor dealers) is linked to the interest rate that the customer pays and which the … Continue Reading
In our latest consumer credit video, Matthew Gregory, John Coley and Simon Lovegrove take a look at the FCA’s motor finance review and consider what it means for the consumer credit industry generally. Among other things the motor finance review discussed training, which is a key part of the Senior Managers and Certification regime. We … Continue Reading
On 27 June 2019, the FCA launched a market study to examine how the credit information market operates and the impact it has on consumers. The FCA will report on its preliminary conclusions on these themes in Spring 2020 including, if appropriate, a discussion of potential remedies. The FCA is not formally consulting on the … Continue Reading
On 23 May 2019, there was published on InfoCuria (Case-law of the Court of Justice) the opinion of Advocate General Hogan as regards the interpretation of Article 16(1) of the Consumer Credit Directive which concerns the entitlement of a consumer to a reduction in the cost of credit where he or she has fully or … Continue Reading
On 25 March 2019, the FCA published its final report (the Report) on its review of retained provisions of the Consumer Credit Act 1974 (CCA). The FCA took over responsibility for regulating consumer credit in April 2014. As part of the transfer, Parliament repealed some CCA provisions and some were replaced by FCA rules. The … Continue Reading
On 21 March 2019, the FCA published a speech from Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations, on the FCA’s interaction with the consumer credit sector. Highlights from the speech include: the FCA will be doing further work to understand both the motivation for, and the impact of, relending on both consumers … Continue Reading
On 6 March 2019, the FCA published a letter it had sent to firms setting out the results of its review of credit card fees and charges. The FCA reports that there are opportunities for firms to improve outcomes for their customers and take appropriate action where there are signs of actual or possible financial … Continue Reading
On 6 March 2019, the FCA published a Dear CEO letter it had sent to firms setting out the regulator’s view of the key risks that high cost lenders pose to their consumers or the markets they operate in. The Dear CEO letter applies to firms providing the following products: guarantor loans; high-cost short-term credit … Continue Reading
On 4 March 2019, the FCA published its final findings following a review of the motor finance sector. The FCA wanted to understand the use of motor finance products, and to assess the sales processes employed by firms and whether the products could cause consumer harm. The FCA reports that it has serious concerns about … Continue Reading
Introduction On 18 December 2018, the FCA announced the next package of measures forming part of its high-cost credit review. It has announced proposals to change how banks charge for overdrafts. It has also made new rules strengthening the protections for consumers using home-collected credit (doorstep lending), catalogue credit and store cards and it is … Continue Reading
On 27 November 2018, the FCA published a press release announcing that it will be delaying the launch of its Credit Information Market Study (CIMS) Terms of Reference until June 2019 in order to prioritise its market study on general insurance pricing. The CIMS is intended to help the FCA gain a better understanding of the … Continue Reading
On 9 November 2018, the Treasury Committee (the Committee) announced the launch of a new inquiry (the Inquiry) into consumers’ access to financial services. The Committee will scrutinize whether certain groups of consumers are excluded from obtaining a basic level of service from financial services providers. It will also examine whether vulnerable consumers pay more … Continue Reading
On 30 October 2018, HM Treasury published a consultation (the Consultation) on the policy proposal for the implementation of a breathing space and statutory debt repayment plan, both announced in the 2017 Conservative party manifesto. The two proposals should be viewed separately. The first proposal, breathing space, would give an individual in problem debt the … Continue Reading
