Emma RadmoreThe BoE has published its credit conditions survey for Q1 2025. The quarterly survey covers secured and unsecured lending to households, and lending to non-financial corporations, non-bank financial firms and small...
Category - Consumer Credit
Laura Wiles
FCA updates on motor finance complaints
FCA has further updated its page containing guidance on the handling of motor finance complaints to include the link to its submission to the Supreme Court. It had previously updated its guidance in the light of the...
Duncan Scott
Court of Appeal rules motor finance commission cases can be dealt with using omnibus claim forms
The Court of Appeal (CoA) in Angel & Ors v Black Horse Ltd [2025] EWHC 490 (KB) has overturned the case management decision taken at first instance that the eight claim forms covering 5,800 claimants could not be...
FCA publishes summary grounds of intervention in motor finance appeal
The FCA has published summary grounds of intervention in support of its application to intervene in the appeals relating to motor dealer-broker commissions. The FCA wants to intervene in writing and for up to an hour...
FCA Chief Executive responds to House of Lords motor finance commission questions
In a letter dated 17 January 2025, Nikhil Rathi (Chief Executive of the FCA) responded in detail to questions raised by the Rt. Hon Lord Forsyth of Drumlean in his capacity as Chair of the Financial Services Regulation...
FCA sets out strategy for credit reference agencies and service providers
The FCA has published a portfolio letter to credit reference agencies (CRAs) and credit information service providers (CISPs) setting out its strategy for the next two years. The priorities will focus on: Embedding of...
High Court backs FOS on DCA complaint
The High Court has dismissed all 3 grounds of appeal brought by a lender under a discretionary commission arrangement (DCA) for motor finance, following a FOS decision to uphold a customer complaint. The grounds of...
FCA quarterly consultation includes PEMC limit increase
The FCA’s latest quarterly consultation includes proposals to: clarify some consumer credit product PSD reporting; increase the current £100 medical condition premium trigger that means firms must signpost...
FCA to consult on time extension for non-discretionary motor finance commission complaints
Following the Court of Appeal’s decision to allow appeals to the Supreme Court in relation to three cases of non-disclosure of non-discretionary commission for motor finance (we covered this in FIN here), the FCA...
FOS warns on lack of understanding of s75
The FOS has said that failing to understand the rules around claims under s75 CCA can affect consumers’ chances of getting their money back. Its guidance debunks several myths: that s75 only helps if the purchase...
FCA fines finance company over fair treatment
The FCA has fined Volkswagen Financial Services (UK) Limited over £5m in a package that also involves the firm in paying £21.5m redress to customers who may have suffered harm over the firm’s failure to treat...
FCA updates website on consumer credit reporting
The FCA has updated its website on reporting requirements for consumer credit firms to take account of the upcoming changes to Product Sales Data reporting that will take effect from October 2025 and April 2026 for...
FCA consults on new consumer credit regulatory return
The FCA is seeking views on its proposal to issue a new regulatory reporting return for consumer credit firms carrying on any one or more of the regulated activities of credit broking, providing credit information...
BoE publishes Q2 Credit Conditions and Bank Liabilities Surveys
The BoE has published the results from its quarterly survey of banks and building societies looking at credit conditions in the quarter to the end of May 2024. As usual, the survey covers: secured and unsecured lending...
FCA bans individual for failing to disclose conviction
The FCA has banned Graham Lilley, formerly an authorised sole trader, from carrying on any regulated activity carried on by any person and has cancelled his permissions. It discovered that Mr Lilley had been convicted...
FCA publishes hire purchase agreement undertaking
The FCA has published a notice of undertaking under the Consumer Rights Act in relation to vehicle hire purchase contracts issued by Mercedes-Benz Financial Services (UK) Limited. The FCA had been concerned that an...
FOS publishes half-yearly complaints data
FOS’ latest half-yearly complaints data shows a rise of 20% in complaints during H2 2023, with the rise driven mainly by banking and credit complaints. Within that sector, current accounts and credit cards...
FCA finalises consumer credit sales data rules
The FCA has finalised its new rules that incorporated 3 new Product Sales Data returns into SUP. The enhanced requirements should help the FCA to get better market insights and to intervene more quickly if it sees risks...
FCA updates on motor finance complaints
Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...
FCA 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...
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 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...
Harry WellsFCA 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...
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 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...
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...
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...
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...
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...
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...
FIN. TeamFCA 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...
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...
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 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...
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...
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...
FLA publishes consumer credit research
The Finance and Leasing Association has published a research paper that looks at what improvements consumers would like to see in consumer credit. While many respondents thought the products and markets are functioning...
FCA censures Amigo for inadequate affordability checks
FCA has publicly censured Amigo Loans Ltd following a finding that it did not have appropriate processes in place to assess borrower and guarantor circumstances before granting loans for a period of around 18 months...
Treasury consults on BNPL legislation
Treasury has published the long-awaited consultation on draft legislation to bring those who offer Buy-Now-Pay-Later and similar products within the scope of financial regulation. It has published both the draft law...
FCA publishes supervisory notice on high-cost lender
FCA has published a “further first supervisory notice” to Indigo Michael Limited, a high cost consumer credit lender. It first imposed a notice on the firm in July 2022, and now requires that: the firm must...
Court holds “debtor” must be contractual party
The Court of Appeal has held that an individual cannot bring a claim under s75 CCA unless they were party to the relevant credit agreement, as otherwise they cannot be a “debtor” for those purposes. In ...
FCA extends confirmed guidance on motor ads
FCA has extended its confirmation of the Radiocentre industry guidance on ensuring financial promotions for motors brands on radio are clear, fair and not misleading and compliant with CONC. The guidance is now...
EU provisionally agrees new Consumer Credit Directive
The European Parliament and Council have reached provisional agreement on updating EU rules on consumer credit. The new rules will cover credit agreements of up to €100,000. Key provisions will: require a...
FCA consults on credit information improvements
FCA has set out its initial findings from a credit information market study in an interim report and discussion paper and its annexes. The study was launched because of concerns about the quality of credit information...
Nicola RadfordFCA asks consumer credit firms for credit data
FCA is asking several consumer credit firms to provide it with data on their credit activities, to enable it to monitor and assess the impact of the rising cost of living. It is not making a formal information request...
Claimant permitted to apply for judicial review of FOS ‘fairness’ decision
The High Court have granted a Claimant permission to make an application for judicial review in respect of a decision of the Financial Ombudsman Service (FOS) against the Claimant in respect of the provision of credit...
FCA allows Amigo to re-start lending in pilot
FCA has published a letter sent to Amigo Loans which approves its request to start lending again on a pilot basis. In 2020, following a large number of customer complaints, Amigo paused new lending and announced that it...
FCA portfolio letter to high-cost lenders
FCA has published its portfolio supervision letter in relation to high-cost lending products. The letter sets out the risks FCA believes high-cost firms pose to their customers and the markets in which they operate and...
Emma RadmoreFCA warns again on misleading BNPL ads
FCA has written to BNPL providers and to the British Retail Consortium, warning them that even while some BNPL agreements remain currently unregulated, this does not mean that the financial promotion rules don’t...
Clarity for lenders dealing with borrowers in distress
The Supreme Court has refused the Appellant’s application for permission to appeal against the Court of Appeal’s decision in Morley (t/a Morley Estates) (Appellant) v The Royal Bank of Scotland Plc...
Harshil PatelCourt refuses permission to appeal on CCA default notice
The Supreme Court has refused the Appellant debtor’s application for permission to appeal the Court of Appeal’s decision in Goodinson (Appellant) v PRA Group (UK) Ltd (Respondent) [2021] EWCA Civ 957...
European Parliament proposes new online credit suitability rules
MEPs have proposed legislation designed to protect consumers online from credit card debt, overdrafts and loans that are unsuitable for their financial situation. The proposed new rules would require that: consumers are...
FCA Portfolio letter for Mainstream Consumer Credit Lenders
On 27 June 2022, the FCA published a portfolio letter setting out its supervisory strategy for mainstream consumer credit lenders (MCCLs). In the letter, the FCA outlined the key risks of harm for MCCL firms, their...
Treasury confirms BNPL proposals
Treasury has published its consultation response to its plans for regulating the buy-now-pay-later credit market. It has confirmed that: lenders offering BNPL will need to be authorised by FCA; lenders will need to...
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...
Council adopts new rules on EU regulation of consumer credit
The Council has published its agreed position on the revision of the Consumer Credit Directive (Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and...
High Court approves Amigo scheme of arrangement
The High Court has approved the scheme of arrangement that will provide redress for customers who were mis-sold loans by Amigo and who have raised a complaint. FCA has reiterated that the scheme is an improvement on the...
FCA warns firms to stop using misleading credit ads
The FCA has written to c.28,000 consumer credit firms warning them not to use terms such as ‘no credit check loans’, ‘loan guaranteed’, ‘pre-approved’ or ‘no credit...
FCA to remove credit broker permissions
FCA has published its first supervisory notice against Semantic Business Services Ltd, a secondary credit broker. It plans to remove the firm’s permissions because: the firm has links with a number of other firms...
FCA confirms non-opposition to Amigo scheme
FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...
FCA speaks on credit regulation in tough times
Brian Corr, Interim Director of Retail Lending at FCA delivered a speech on 23 March 2022 to the Credit Summit addressing the impact credit will have on consumers as the economic situation continues to deteriorate and...
APP Fraud and the extent of the Banks Duty – to be determined at trial
In the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318, the Court of Appeal has allowed the appeal from Mrs Philipp against the decision of the High Court in 2021 to give judgment to Barclays Bank UK plc on...
CAT determines the ‘domicile date’
CAT has published its Judgment giving further guidance on the ‘domicile date’, which is the date specified in a CPO. The domicile date operates to determine the persons who fall within the class definition...
High Court rules on application of CCA ‘business purpose’ exemption to multi-borrower loans
In Campbell v Tyrrell & Ors [2022] EWHC 423 (Ch), the high court considered the application of the ‘business purpose’ exemption in s.16B(1) of the Consumer Credit Act 1974 (the “CCA“) to a...
FCA portfolio letter for Credit Unions
The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...
ECON publishes draft opinion on consumer credits proposal
On 1 February 2022, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft opinion on the European Commission’s legislative proposal for a Directive on consumer credits to...
FCA updates on borrowers in financial difficulty
The FCA launched the borrowers in financial difficulty (BiFD) project in March 2021, with the aim of ensuring firms continue to support borrowers facing financial difficulties. The project covers a range of retail...
Emma BondUK Finance responds on BNPL consultation
UK Finance has published its response to HM Treasury’s consultation on the regulation of BNPL products. The response shows that there is a consensus amongst UK Finance members: that BNPL products should be brought...
Commons Library publishes “Black Friday promotions” paper
The House of Commons Library has published a research briefing on the promotion and regulation of financial products on Black Friday. A debate has been scheduled for 23 November and has been initiated by Stella Creasey...
Treasury consults on BNPL
Treasury has published the long-awaited consultation on buy-now pay-later regulation, following the announcement on 2 February that the Government would implement the Woolard Review recommendation to bring interest free...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
FCA looks at next steps in consumer credit regulation
Nisha Arora has spoken on FCA’s priorities in regulating consumer credit. She noted that FCA has significantly improved outcomes for consumers using credit since FCA took over its regulation, but that there is...
FCA updates rules on credit card instalment plans
FCA has issued its latest Handbook update, which confirms: changes to CONC, effective from 1 October, so firms can offer a greater variety of fixed instalment plans in their credit card products. FCA has routinely been...
Treasury answers questions on BNPL and pension transfer advice
Published answer to written questions include: in answer to a question on when the BNPL legislation will be put forward, Lord Agnew said there would be a consultation document “soon”; in answer to a question...
FCA warns on credit intermediary application delays
FCA has updated its webpage on how to apply for authorisation to warn firms that it is receiving an extremely high volume of applications from credit intermediaries, such that allocating a case officer is taking up to 6...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
FCA to survey preparedness for GI pricing changes and use of credit broking permissions
The latest edition of “regulation round up” notes that FCA is shortly to ask a sample of insurers, insurance intermediaries and PCWs to complete a short survey to say how ready they are for the new general...
EBA report: management and supervision of ESG risks for credit institutions and investment firms
The EBA has published its Report on Environmental, Social and Governance (ESG) risks management and supervision. The report provides institutions with common definitions of ESG risks and their transmission channels and...
ASA publishes further ruling on delayed payment services
Continuing the flurry of rulings against delayed payment service ads, ASA published a further ruling on 26 May, this time against a claim appearing on the Laybuy UK website. Text on the website stated: “…...
FCA publishes updated information sheets
The FCA has issued updated consumer credit information sheets in accordance with the CCA 1974. The updates are to provide more targeted and useful help to customers, particularly those with mental wellbeing issues. The...
No timescale on BNPL
In answer to a question in Parliament, the Government confirmed its intention is still to bring forward secondary legislation to bring forward currently unregulated BNPL products “when Parliamentary time...
ICO fines Amex for direct marketing messaging without consent
The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
FCA to issue credit broking permissions survey
FCA is asking regulated firms that hold the credit broking permission to complete a short survey to update the information FCA holds on how they are using this permission. A pilot survey will be sent to 300 firms on 20...
Breathing Space scheme takes effect
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 took effect on 4 May 2021. The scheme aims to help millions of people in debt crisis get...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
European Commission performs ‘mini-sweep’ on consumer credit
The European Commission has published details of a ‘mini-sweep’ on websites advertising and selling consumer credit products in 13 EU member states and 2 EEA countries. The Commission’s main objective...
FCA issues reminder to consumer credit firms about post-Brexit disclosure changes
FCA has issued a statement and published an updated webpage to remind firms subject to regulations 8, 10 and 11 of the Disclosure Regulations 2010 and the corresponding rules in the FCA Handbook of the changes they will...
FCA finalises cancellations and refunds guidance extension
FCA has published its finalised guidance extending its temporary guidance on how it expects firms to act when customers are making claims for cancelled events or travel arrangements. The guidance takes effect from 2...
FCA tells CMCs and High Cost Lenders to work together on complaints
FCA has received several communications from high cost lenders and CMCs who are not happy with how each other has dealt with complaints brought by consumers against high cost lenders using CMCs. Amongst the...
FCA updates on cancellations and refunds guidance
FCA has updated its webpages and finalised guidance on how it expects credit and debit card and insurance providers to deal with requests for refunds following cancellation of trips, events and holidays as a result of...
National Courts can order parties to re-negotiate unfair terms, says the CJEU
In Banca B. SA v A.A.A (Case C 269/19) ECLI:EU:C:2020:954 the First Chamber of the Court of Justice of the European Union (CJEU) has held that National Courts can facilitate negotiations to replace an unfair term where...
Treasury confirms BNPL regulation “as soon as time allows”
Heralding the publication of the Woolard Review, Treasury published its exchange of letters with Chris Woolard confirming the Economic Secretary’s agreement with the recommendation to regulated interest-free BNPL...
FCA publishes unsecured credit market report
The FCA published the Woolard Review on the unsecured consumer credit market today. The report sets out 26 recommendations on how to make the market better in the future including: bringing BNPL into regulation more...
FCA publish latest coronavirus updates
The FCA has today published an update on mortgages, consumer credit, banking and payments during coronavirus. The main points can be summarised as follows: repossessions under mortgages cannot be undertaken without...
FCA fines over treatment of customers in arrears
FCA has fined 3 entities in the Barclays group £26m for breaches of Principles 3 and 6 relating to failures in relation to their treatment of consumer credit customers who fell into arrears or were otherwise in...
Mainstream Consumer Credit Lenders portfolio letter published
The FCA has today published the letter it sent to the Board of Directors of mainstream Consumer Credit Lenders. The letter sets out the FCA’s: views of the risks these lenders pose to their consumers or the...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
FCA: Covid support for consumer credit
The FCA yesterday published it’s next stage of enhanced support that firms must offer consumer credit customers facing payment difficulties as a result of the COVID-19 pandemic (FS20/18). If you’d like to...