CMA is inviting comments on a potential review of part of the Home Credit Market Investigation Order 2007. The Order followed a market investigation that showed there was a lack of competition in home credit. The relevant parts require home credit lenders, including large lenders, to provide information to and fund a comparison website for home credit. The Order has required lenders also to highlight the site to customers.
CMA says that at the time the Order took effect there were 6 large lenders funding the comparison website, but now only one is still in the market. The amount of funding from each lender depends on its home credit turnover, and given the lack of large lenders and the fact that the Morses Club had not paid its share of the 2024 funding costs when it went into administration, there is not enough money for the site to operate for all of 2024.
CMA thinks this may be a potentially relevant change of circumstance that gives it the right to assess whether the requirements are still appropriate. It has now announced suspension of the relevant parts pending outcome of its invitation to comment. It asks for comments by 30 January, and will then decide whether to launch a review of the relevant parts of the Order.