Tag: Consumer Credit

FCA issues statement regarding motor finance firms’ financial resources

On 12 April 2024, the FCA issued a statement on its website reminding motor finance firms that they must maintain adequate financial resources at all times. Earlier this year the FCA announced that it was using its powers under the Financial Services and Markets Act 2000 to review sales of historical motor finance discretionary commission … Continue Reading

FCA reviews its approach to secondary brokers

On 16 November 2023, the FCA announced that it has recently reviewed its interpretation of the consumer credit legislation for Limited Permission secondary credit brokers, and specifically how the legislation applies to credit broking firms whose main business activity is the supply of non-financial services. As a result of that review, firms that were authorised … Continue Reading

FCA publishes diagrams on its proposal to add 3 new product sales data returns to the Supervision manual

On 14 November 2023, the FCA published a set of diagrams intended to act as an aid to understand the proposals set out in its Consultation Paper CP23/21 on consumer credit – product sales data reporting. For more detail on CP23/21, please see our previous blog. These documents have been prepared with the aim of … Continue Reading

EBA consults on draft guidelines on complaints-handling of credit servicers under the NPL Directive

On 9 November 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on complaints-handling of credit servicers under Directive (EU) 2021/2167 on credit servicers and credit purchasers (otherwise known as the NPL Directive). The main purpose of the NPL Directive is to foster the development of secondary markets for non-performing loans … Continue Reading

Published in OJ: CCD II

On 30 October 2023, there was published in the Official Journal of the European Union (OJ) Directive (EU) 2023/2225 of the European Parliament and of the Council of 18 October 2023 on credit agreements for consumers and repealing the Consumer Credit Directive. The Directive enters into force on the twentieth day following its publication in … Continue Reading

European Council approves CCD II

On 9 October 2023, the European Council adopted the revised Consumer Credit Directive (CCD II). The CCD II repeals and replaces the current 2008 directive in consumer credit agreements. In particular, the CCD II aims to ‘promote responsible and transparent practices by all players involved in consumer credit,’ and promotes responsible and transparent practices by … Continue Reading

New Regulation Tomorrow plus podcast – HM Treasury final consultation on the regulation of BNPL products

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

Regulation of Buy-Now Pay-Later: HM Treasury consultation on draft legislation

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

Commission welcomes political agreement on the proposed revised Consumer Credit Directive

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

European Parliament draft report on the proposed Directive on consumer credits

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

Government responds to BNPL consultation

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

ASIC releases six-monthly enforcement report: 256 enforcement outcomes and plenty more in the pipeline

ASIC, which is Australia’s corporate, markets and financial services regulator, has over the last six months achieved a bumper 256 enforcement outcomes designed to protect consumers and enhance the fairness and efficiency of the financial markets.  These enforcement outcomes included criminal, civil and administrative actions in addition to negotiated outcomes such as enforceable undertakings. While … Continue Reading
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