The FCA has published Guidance Consultation 16/2: Proposal to issue guidance on the FCA’s view of enforcing security under the Consumer Credit Act 1974 (GC16/2).
In GC16/2, the FCA sets out proposed guidance with respect to the operation of the Consumer Credit Act 1974 (CCA), and in particular the requirement in section 87 to serve a default notice before taking certain action following breach of a regulated agreement. The proposed guidance relates to guarantor loans, under which an individual other than the borrower provides a guarantee or indemnity (or both) in relation to a regulated credit agreement or a regulated consumer hire agreement. The draft guidance also updates the FCA’s view on the need for a default notice in certain circumstances as set out in its September 2015 Policy Statement (Policy Statement 15/23: Consumer credit – feedback on CP15/6 and final rules and guidance).
The deadline for comments on GC16/2 is 18 March 2016.