Roma Pearson of FCA spoke on the importance of a well functioning credit market and the need for firms to understand the impact on consumers of changing pressures and to offer appropriate support. She noted that good quality debt advice can be critical, and that FCA wants a well functioning credit market where customers are treated fairly, supported if they get into difficulty and equipped with the right information to make good decisions.
She said this aligns with the Consumer Duty and noted the need for firms to:
- share information appropriately with commercial partners, including distribution networks, wholesalers, retailers and other third parties;
- focus on the areas that will have the biggest impact on outcomes for customers;
- ensure they have properly identified their target market and that consumers understand their communications; and
- ensure that any lingering sludge practices are addressed.
FCA will support firms, consult as soon as it can on BNPL regulation and continue to take action where it sees harm. It will also be working with the government on CCA reform.