Government commits to Consumer Credit Act reform

The Government has announced its commitment to seeking reform of the rules contained in the Consumer Credit Act 1974 (the CCA) in an effort to modernise them, cut costs for business and ensure the rules are easier for consumers to understand.

To achieve this, it is initially proposed that much of the CCA could be removed from statute  and moved instead into the Financial Conduct Authority’s rulebook which would  enable the regulator to respond more quickly to emerging developments in the consumer credit market.

The intention is that the reforms will allow lenders to provide a wider range of finance whilst maintaining high levels of consumer protection.

A consultation is expected to be published by the end of this year outlining the government’s proposals, and seeking views from stakeholders on how the CCA should be reformed.

Duncan Scott