Harry WellsThe Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
Category - Consumer Finance
Lucy HadrillFCA notes good and poor practice for credit broking ARs
The FCA has carried out a review of the key harms and drivers of harm caused by ARs and IARs in the credit broking market. Key areas where some principals could improve are; making sure they undertake criminal or credit...
Emma RadmoreFCA finalises guidance for borrowers in financial difficulty
The FCA has finalised its rules and guidance to strengthen protection for consumer credit and mortgage borrowers in financial difficulty. It has decided to bring parts of its current guidance in FG23/2 for mortgage...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
FCA gives guidance on consumer credit income reporting
The FCA has updated its guidance for consumer credit firms to reflect changes to the way firms now need to calculate their proxy measure of annual income. When completing their reports, credit brokers need to include...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA publishes Mortgage Charter uptake data
In June 2023, the FCA introduced new rules to support the Government’s Mortgage Charter’s commitments, including providing for firms to allow customers to make reduced capital payments for up to 6 months, or...
Government sets out third phase of Smarter Regulatory Framework
Following its Smarter Regulatory Framework (SRF) delivery plan, Treasury has published a follow-up paper which sets out the progress made so far and the government’s approach to the next phase of the SRF programme...
FCA writes to CEOs on consumer lending strategy
The FCA has published a “Dear CEO” letter on its strategy for Consumer Lending. The letter focuses on three of the lending portfolios within the market – high-cost lending, mainstream consumer credit...
Court decides on investment property loans
The Court of Appeal has found in favour of an unregulated lender, confirming that agreements it entered into with individuals were investment property loans which were exempt from the RAO definition of “regulated...
FCA speech: investing in outcomes
Nikhil Rathi, Chief Executive of the FCA, has delivered a speech on the FCA’s broad approach to topics in which investors have recently been expressing significant interest. The speech highlighted the following as...
FCA publishes mortgage lending statistics for Q4 2023
The FCA has published mortgage lending statistics for Q4 2023. The data comes from the 340 regulated mortgage lenders and administrators who are required to submit the Mortgage Lending and Administration Return each...
FCA updates on skilled persons reports
The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...
FCA commits to personal guarantee investigation
FCA has committed to conducting an investigation into the use of personal guarantees by lenders as security for loans made to small business customers. FCA is acting in response to a super complaint brought by the...
Duncan ScottFOS data shows credit card complaints on the rise
The latest FOS products complaints data (covering October – December 2023) shows that complaints about credit cards reached the highest level ever recorded in a 3-month period. 55% of these complaints were about...
CMA launches Home Credit Market Order review
CMA has formally launched a consultation on part of the Home Credit Market Investigation Order 2007. The review relates to the operation, information and management of a cash loan price comparison website. The website...
FCA updates on interest-only mortgage work
FCA is working with an Industry Working Group of 12 mortgage lenders and administrators on a review of FCA’s current guidance on interest-only mortgages. There were under 1 million interest-only and part-and-part...
FLA launches accreditation service
FLA’s new Broker Accreditation (Asset Finance) Service will help brokers show they are compliant with FLA’s Business Finance Code and their regulatory obligations. It also says the accreditation, which...
Illegal money lender jailed for failing to pay confiscation order
FCA has issued a press release highlighting the nearly 8 year prison sentence handed down to Dharam Prakash Gopee by the City of London Magistrates’ Court for wilfully refusing to adhere to a confiscation order...
FCA intervenes in 10,000 ads in 2023
FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...
FCA confirms rule updates
FCA’s latest Handbook Notice confirms rule changes its Board agreed in December, and the new motor finance complaints rules, as well as two changes agreed on 25 January. The two latest changes: update SUP 12.4...
FCA publishes guidance on motor finance complaints
FCA has published a new page on its website giving guidance to firms on what it expects of them, if they are affected by the DCA review. The guidance covers: keeping customers informed: responding in line with existing...
FOS gives guidance on motor finance complaints
Following its consultation on its plan and budget for 2024/25 (which closes on 30 January), FOS has reiterated its expectation that complaints to it will increase in the next financial year. It has identified a number...
BSA hopeful of update to 1986 Act
The Building Societies Association welcomed the upcoming 2nd reading of the Building Societies Act 1986 (Amendment) Bill which will take place on 19 January. The Bill aims to put building societies on a level playing...
CMA consults on change to home credit market order
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...
FCA takes action on motor finance complaints
FCA is unhappy that motor finance firms are rejecting high numbers of consumer complaints about commission arrangements. After FCA banned discretionary commission arrangements in 2021, many consumers complained and...
Court says s138D FSMA claims outside s14A Limitation Act
The High Court has held that a claim for breach of statutory duty under s138D FSMA does not fall within the provisions of s14A Limitation Act, which would allow the limitation period to be extended in certain...
FCA reflects on 2023
Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...
ABI research shows personalised guidance enhances financial decisions
The recent research conducted by the Association of British Insurers (ABI) in collaboration with Thinks Insight and Strategy’s Behavioural Team underscores the substantial impact of personalised guidance on...
FIN. TeamFCA publishes Consumer Duty retail banking review
FCA has published its conclusions from a multi-firm review it carried out in the retail banking and lending sector, to help it understand how firms had approached reviewing their products and services against the...
FCA publishes mortgage lending statistics for Q3 2023
FCA has published a webpage on mortgage lending statistics for Q3 2023. The data was collected by FCA from around 340 regulated mortgage lenders and administrators who are required to submit the Mortgage Lending and...
Vida FatemiBasel Committee consults on targeted adjustments to standard on IRRBB
The Basel Committee has published a consultation on targeted adjustments to its 2016 standard on interest rate risk in the banking book (IRRBB). Under the IRRBB standard, banks are required to calculate measures of...
FCA proposes credit information changes
FCA has announced proposals which will: require FCA-regulated data contributors, such as lenders, to share credit information with credit reference agencies (CRAs); introduce a common data reporting format to enhance...
Digital Markets, Competition and Consumers Bill to be debated
The Digital Markets, Competition and Consumers bill is being debated by members of the House of Lords during a second reading on Tuesday 4 December. The bill will create a regime to empower the Competition and Markets...
Lenders go into administration
FCA has confirmed that Morses Club Limited, a home collected credit lender, and its subsidiary Shelby Finance Limited (Dot Dot Loans – an online HCST lender) have gone into administration. It provided information...
FCA updates on secondary credit broker expectations
FCA has a new page on its website for secondary credit brokers, on which it sets out what it expects from applicants, including the difference between limited permission and full permission firms. The page links to...
FCA secures conviction of mortgage fraud broker
Larry Barreto, who had already pleaded guilty to 2 offences of arranging and advising on regulated mortgages without FCA authorisation, has been found guilty of 11 charges of fraud by false representation. For a period...
Supreme Court confirms postponement of limitation period for deliberate concealment of PPI commission payment
The Supreme Court judgment in Canada Square Operations Ltd v Potter supported the decisions of the County Court, High Court and Court of Appeal to hold that s32 Limitation Act 1980 applied to postpone the start of the...
FCA speech: next steps for Consumer Duty
Nisha Arora (Director of Cross Cutting Policy and Strategy at the FCA) has delivered a speech on the Consumer Duty and the next steps for firms. The speech highlighted the following examples of good practice identified...
EU adopts new consumer credit directive
The EU has adopted the new Directive on Consumer Credits (CCD), repealing and replacing the 2008 Consumer Credit Directive in order to take account of the significant changes that have taken place in the consumer credit...
FCA takes action on BNPL terms as product use grows
FCA has taken action using its powers under the CRA against potentially unfair terms in unregulated BNPL contracts issued by PayPal and QVC. It said it is particularly important to make sure consumers have the right...
Treasury and FCA hold perimeter meeting
Treasury and FCA have published the record of their July meeting to discuss aspects of the regulatory perimeter. The issues discussed included: discussion of FCA’s plans around expectations on firms carrying out...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
HCSTC lender goes into administration
FCA has announced the administration of Novaloans Limited, an online only high-cost short-term lender and provided details of its administrators and the entity the administrators have instructed to collect all...
FCA updates complaints data
FCA has published updated complaints data based on returns from firms. Snapshots from the 2023 H1 data include: a slight increase in complaints from the previous 6 months (5%); most significant increases in the...
FCA updates on skilled persons reports
FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...
PRA annual assessment of credit unions
The PRA has written to credit unions following its annual assessment of the sector. Key messages for both large (those with total assets between £10m and £50m) and small (those with total assets up to £10m) credit...
Supreme Court rules on limitation in PPI case
In the case of Smith and another (Appellants) v Royal Bank of Scotland (Respondent) [2023] UKSC 34, the Supreme Court has ruled that the claims made by claimants seeking orders under the Consumer Credit Act 1974 were...
Scott NodderDebt packager referral fee ban implementation period ends
In June 2023, FCA published its policy statement and final rules on debt packager referral fee bans, which took effect from 2 June 2023 for new debt packager firms and their newly appointed ARs, but which existing debt...
FCA speaks on financial inclusion
Nikhil Rathi has spoken on how FCA is looking for solutions to tackle financial exclusion, but that it needs help from industry and technology to do so. He explained that FCA does not have the remit or powers to tackle...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
FCA consults on consumer credit reporting changes
FCA is consulting on the potential introduction of three new product sales data returns for consumer credit lenders, to enable it better to assess how firms operate and to develop appropriate supervision strategies...
ASA rules equity release ad “irresponsible and misleading”
ASA has published its ruling on an ad by Key Retirement Solutions Ltd, which promoted its equity release mortgage product off the back of a cartoon sketch of a couple taking financial advice, with a voiceover suggesting...
FCA finds issues in later-life mortgage business
FCA has reviewed the promotion and advice process of firms in the later-life mortgage sector and has found a number of problems. The nature of the product means they are often sold to customers at higher risk of being...
FCA consults on MIPRU PII clarifications
FCA’s latest quarterly consultation paper includes a proposal to clarify a potential conflict between the requirements in MIPRU 3.2.1R that require a firm to take out and maintain continuous PII what must include...
FCA cancels unused permissions
The FCA has used its power to cancel consumer credit permissions which were not used for 2 years. Mr Roche was authorised by the FCA in January 2015 and held consumer credit permissions of: agreeing to carry on a...
Parliament issues consumer financial services FAQs
The House of Commons Library has published a research briefing setting out a list of FAQs relating to banking services, mortgages, investments and credit scores.
FCA publishes interest-only mortgage research
FCA has published a research note analysing its data on the population of regulated interest-only mortgages that existed as at 31 December 2022. The analysis found that: Interest-only mortgages currently make up 9% of...
Laura WilesOmbudsman News highlights current hot topics
The latest edition of FOS’ Ombudsman News highlights: the Consumer Duty: now the Duty is in force, FOS will be speaking to firms to assess the complaints firms are receiving; FOS’ updated guidance for firms...
FCA warns consumers on loan fee fraud
FCA has issued a consumer warning to help customers avoid loan fee fraud as they look to cover the costs of summer spending. This type of fraud, which involves customers paying for a loan they never receive, typically...
FOS blogs on consumer card protections
FOS has published a blog on how businesses can help consumers who have problems with goods and services. It has noticed that consumers aren’t always aware of the protections they have when paying for goods or...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
FOS updates on car finance commission complaints
FOS has published a blog on complaints about car finance commission. It is seeing an increase in complaints about the fairness of commission arrangements when customers took out a car finance agreement – often...
Consumer Duty takes effect
The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
Banks and FCA respond to Treasury on further savings rates queries
Early in July, the Treasury Committee progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. The banks and FCA...
Treasury publishes CCA reform plans
Treasury has published the outcome of its consultation on reforming the Consumer Credit Act 1974 (CCA). The Government’s intention is that reform will facilitate innovation in the credit sector and increase...
Government publishes Smarter Regulatory Framework delivery plan
Treasury has published a delivery plan setting out how the Government will deliver a Smarter Regulatory Framework (SRF) tailored to the UK now that FSMA 2023 has repealed retained EU law for financial services. As part...
FOS warns on credit hire risks
FOS is warning that many consumers do not understand the risks of credit hire, which could leave them facing large bills. Credit hire is used as an alternative to claiming on motor insurance, and involves claims or...
Ombudsman News updates FOS initiatives
The latest edition of Ombudsman News highlights: what FOS is doing to prepare for the Consumer Duty; the annual complaints data from 2022/3; its items on hybrid scams and escape of water in unoccupied properties...
Treasury Committee probes further on savings rates
The Treasury Committee has further progressed its campaign for banks to increase savings rates by issuing letters to FCA and the UK’s biggest high street lenders: Barclays, HSBC, Lloyds and Natwest. In...
FCA publishes insurance guidance on supporting customers in financial difficulty
Following its January consultation, FCA has published finalised insurance guidance on supporting customers in financial difficulty. In November 2020, FCA published guidance for insurance and premium finance firms to...
FCA implements Mortgage Charter rules
FCA has published a policy statement setting out changes to the MCOB sourcebook to support the implementation of the Government’s Mortgage Charter. The rule changes take effect immediately from 30 June, and enable...
Regulators call on firms to support customers amid cost of living crisis
FCA, Ofgem, Ofcom and Ofwat have published a joint Dear CEO letter calling on firms to support customers struggling with the increased cost of living and keep prices fair. The letter notes FCA’s Financial Lives...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
Government and regulators agree consumer support action plan
Chancellor Jeremy Hunt has chaired a roundtable with CEOs from CMA, FCA, Ofcom, Ofgem and Ofwat as part of the Government’s plan to halve inflation this year and return to the 2% target. Treasury expects that the...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
Treasury publishes mortgage charter
Treasury has published a policy paper on the Mortgage Charter, which sets out commitments from the principal UK mortgage lenders to their residential mortgage borrowers. The new commitments are designed to help...
Court considers meaning of “investment property loan”
A court has considered whether a series of loans constituted “investment property loans” under Article 61A(6) RAO, which would exempt them from being regulated mortgage contracts. To be an investment...
Government agrees support measures for mortgage holders
The Government has met with the UK’s principal mortgage lenders and FCA to agree a new mortgage charter providing support for residential mortgage holders. Recent market indicators show that mortgage arrears and...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
LSB speaks on digital evolution and inclusivity
Anna Roughley of the LSB has spoken on the evolution of digital and technical services in the context of providing a consumer-focussed outcome for lending. First she noted that, while digital banking is ideal for many...
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
FOS publishes annual complaint data stats
FOS has published the annual complaints data for the 2022/23 financial year and commented on the common themes. Of the most complained about products current accounts had a 40% uphold rate; credit cards 34%...
FCA starts criminal proceedings for unauthorised SRB schemes
FCA has started criminal proceedings against 3 individuals, 2 of whom worked together, in relation to the offering of loans and sale and rent back agreements without being authorised to do so. It has also charged 2 of...
‘Scale challenger’ banks respond to Treasury Committee on savings rates
The Treasury Committee last month expanded its campaign for banks to increase savings rates offered to loyal customers, questioning why easy access savings rates are much lower than the current BoE base rate. The...
FSMB Report stage in Lords to start on 6 June
The Report stage of the FSM Bill is to start in the Lords on 6 June. As previously reported, 3 days of sittings have been scheduled so far. On the first day, amendments to be debated include those on protecting the...
FOS highlights Morses Club scheme of arrangement
FOS has updated its website to reflect the court’s approval for a scheme of arrangement between Morses Club and its creditors. Morses Club was the UK’s largest doorstep lender, which had increasingly faced...
FCA bans debt packager referral fees
FCA has made its final rules banning debt packager firms from operating a business model that incentivises them to recommend options that make them more money rather than those that are in their customer’s best...
FCA publishes information on APRC calculations
FCA has published information on its website relating to the calculation of the Annual Percentage Rate of Charge (APRC) which lenders use for disclosing associated costs of a mortgage contract to borrowers. The figure...
FCA updates on changes for credit unions
FCA has published a new website page on the changes the FSM Bill proposes for credit unions. It highlights to credit unions that, if the changes come into law, any firm wanting to take advantage of them will need to...
FCA takes action on redress for borrowers
FCA has updated on its work with nearly 100 lenders on how they treat borrowers in financial difficulties. It identified a number of failings, including failure to tailor support to the circumstances of relevant...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
FOS publishes discrimination complaints guidance
FOS has published an information page for firms dealing with complaints relating to discrimination. Complaints include: that financial services providers have not made reasonable adjustments to take account of a...
Financial Lives 2023 snapshot shows impact of rising cost of living
FCA has published a snapshot of its most recent Financial Lives survey, which it carried out in January 2023. It found: 1.4m more adults missed payments on domestic bills or credit commitments in 3 or more of the...
FCA publishes latest Financial Lives survey
FCA is inviting participants in its 2022 Financial Lives survey to take part in the new follow-up survey, which looks to understand what has changed in financial services for people in the UK over the last year. The...
Judicial review application dismissed on timeshares and CCA deemed agency
The High Court has handed down its judgment on the regulatory environment surrounding the sale of timeshares. FOS receives many complaints about misselling of fractional ownership of timeshares and selected two cases to...
FCA publishes Q1 fin proms data
The Financial Promotions data from Q1 2023 shows that 2235 promotions were amended or withdrawn as a result of FCA intervention. Nearly half of these were identified by FCA’s own proactive monitoring and almost...
FCA speaks on credit markets
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...
FCA publishes aggregate complaints data for H2 2022
FCA has published its overview of complaints in the second half of 2022. Overall it found: a decrease of 6% in complaints compared to H1, largely due to decreases in complaints about banking and credit cards, insurance...
Treasury Committee publishes exchange of letters with FCA
The Treasury Committee has published its request to FCA to provide it with information on key elements of its regulation following Nikhil Rathi’s appearance before it in early March, and FCA’s response. The...