The FCA has published a new webpage setting out certain questions and answers regarding how it will enforce the consumer credit regime from 1 April 2014.
Most of the rules in the new Consumer Credit sourcebook come into effect from 1 April 2014 but the enforcement of some are subject to a six month transitional period.
In particular, the webpage mentions that the following are not subject to the six month transitional period:
- the new rules on risk warnings for on-line and other electronic financial promotions come into effect on 1 April 2014;
- the new rules for debt management firms to signpost free independent debt advice and ensure that fees for debt plans are spread so that customers begin paying their lenders from the start come into effect on 1 April 2014;
- additional rules for payday lenders come into effect on 1 July 2014; and
- the new rules for peer-to-peer lenders come into effect on 1 October 2014.
This means that firms must comply with the FCA’s rules unless they can prove that they comply with a corresponding rule. This would be a provision in the specified OFT guidance, specific provisions in the Consumer Credit Act 1974 or certain regulations made under it that is substantially similar in purpose and effect to the FCA rule.
View Enforcing our consumer credit regime, 10 December 2013