The FCA published the final rules governing consumer credit on February 28, 2014. As we reported in our briefing on the implications of the new regime for insurers and intermediaries, the rules confirm that introducing consumers to lenders such as premium finance providers will be categorised as a higher risk activity.
There is still no decision on whether monthly premium payments will be exempt but the FCA states that the Government intends to consult on the pros and cons of excluding monthly instalments without interest/charges from the new regime. No further details are provided on when this consultation will take place and for now monthly premium payments fall within the FCA consumer credit regime.
The FCA will take over regulation of consumer credit from the Office of Fair Trading on April 1, 2014.
View PS14/3: Final rules for consumer credit firms, 28 February 2014
View Our briefing, 15 November 2013