FIN.

Category - Consumer Credit

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 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...

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...

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...

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...

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...

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 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...

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...

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 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...

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...

FCA 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...

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...

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...

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...

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...

UK 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...

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...

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 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...

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...

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 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...

FOS approach to CCA complaints

The FOS has published a website setting out its general approach to complaints about consumer credit products. The website sets out details of the types of complaints the FOS will consider, their approach to reviewing...

EC report on CCD

The European Commission published a report yesterday to the European Parliament and Council of the EU on the implementation of CCD. The key outcomes of the evaluation fall into the following headings: Effectiveness...

Breathing Space Consultation Launched

The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales)...

FCA publishes high cost credit review

FCA has published the findings of a review into relending by firms that offer high cost credit. It carried out the review before the current pandemic. The results highlight concerns about poor practices by some firms...

Consumer Panel mulls digital advertising

The Financial Services Consumer Panel has published a discussion paper on digital advertising in financial services.  It is deeply concerned about the use of “adtech” to create detailed profiles of...