Emma RadmoreThe 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...
Category - Consumer Credit
Lucy Hadrill
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 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...
Duncan ScottFCA 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...
FIN. TeamTreasury 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...
Scott NodderCAT 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...
Hannah FrostASA 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...
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...
Default notices amendment regulations published
HM Treasury has published the Consumer Credit (Enforcement, Default and Termination Notices (Coronavirus) (Amendment) Regulations 2020 which come into force on 2nd December 2020 and firms must have implemented the...
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...
FCA speech: the credit market and the pandemic
Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations at the FCA, has delivered a speech on the FCA’s priorities for the credit market. Stressing that consumer credit remains one of his...
Further Consumer Credit Covid-19 measures announced
The FCA today published a number of updated guidance documents for consumer credit firms who have customers still facing financial difficulties due to COVID-19. The publications sets out details of the enhanced support...
FCA to propose mortgage and consumer credit support update
FCA reacted to the announcement of the further measures to contain Covid-19 by saying it will review its measures to support mortgage borrowers impacted by the pandemic. Although FCA stresses borrowers should always try...
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)...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Consumer Credit and Coronavirus: Final FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance, which covers credit cards, loans, rent to own...
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...
FCA calls for views on consumer treatment at end of deferral period
FCA has published a call for input, seeking views on what should happen to mortgage and consumer credit customers reaching the end of a second payment deferral (these will be ending from September onwards). It also asks...
FCA to Ban Motor Finance Discretionary Commission Models
The FCA has announced that it will introduce a ban on discretionary commission models following a consultation in October 2019. As background, some car retailers and motor finance brokers receive commission which is...
Regulation round up highlights refunds, SMRC delays and next steps in Covid-19 consumer protection
FCA’s latest Regulation Round up covers the usual update of FCA’s recent publications, and reminds them of some earlier, still relevant, statements, not least: the confirmed new guidance for motor finance...
FCA consults on extension of motor finance and high cost credit reliefs
FCA is consulting on proposals for how firms should deal with motor finance, BNPL, RTO and pawnbroking customers coming to the end of payment freezes, or who are yet to request them. The guidance is very similar to the...
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...
Covid 19 – FCA confirms additional support for consumer credit customers
The FCA has today (1st July 2020) confirmed the new guidance for firms on how they treat consumer credit customers who are still experiencing financial difficulties due to Covid-19. The new guidance comes in to force on...
European Commission consults on consumer credit agreements
The European Commission is consulting, as part of its review of EU consumer policy, on the Consumer Credit Directive. It wants to review the Directive in light of the recent evaluation which highlighted a number of...
European review of Consumer Credit Legislation
The European Commission published a roadmap looking at reviewing the European Consumer Credit Directive. The feedback period for the roadmap is open from today until 1 September 2020. The review focuses on the following...
FCA Publishes COVID-19 guidance for loan providers
The FCA published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until 5pm on 22 June 2020...
FCA updates COVID-19 guidance for overdraft providers
The FCA has, this morning, published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until...
Covid-19: EP eases rules to encourage lending to companies and households
Members of the European Parliament (“MEPs“) have approved more flexibility in EU banks’ prudential rulebook to focus on lending to the Covid-19-stricken economy. Aiming to strike a balance between a robust...
Amelia GreenFCA updates COVID-19 guidance for credit card providers
The FCA has, this morning, published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until...
Identity of lenders in peer-to-peer lending platform protected by Chancery Appeals Court
In Andrew Milne v Open Access Finance Ltd [2020] EWHC 1420 (Ch) the Court rejected an appeal against the making of a representative order under CPR r. 19.6 but allowed the appeal challenging the identity of that...
£38m support for debt advice
The Government has announced a nearly £38m support package for debt advice providers, to help them to provide essential services to people who have struggled with their finances because of Covid-19. The Money and...
UK Finance reports payment holiday figures
UK Finance statistics show that, as of 21 May, their members report that: 877,800 customer accounts had been given a payment freeze on their credit cards, an increase of 25% from the start of the month; nearly 680,000...
Personal Loans and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. Who does the rules apply to? It applies to all personal loan customers who are already experiencing or reasonably...
Personal Credit Cards and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. Who does the rules apply to? It applies to all credit card customers who are already experiencing or reasonably...
In-action is a breach of duty and amounts to concealment for Limitation defences
In Canada Square Operations Ltd v Mrs Beverley Potter [2020] EWHC 672 (QB) , the High Court heard an appeal by the creditor against the decision of Mr Recorder Rosen QC. In the decision it was found that the creditor...
Contactless limit increasing
UK Finance announced today that the card transactional contactless limit will be increasing from £30 to £45 with the roll out starting on 1 April. The changes may take a while for retailers to implement, especially...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
FCA bans motor finance ads
FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited. The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...
Breathing space to help millions in debt crisis
The government has today, 6 February, Time to Talk Day, published its impact assessment for “breathing space”, a scheme designed to help millions of people in debt crisis, including those suffering with...
FCA writes Dear CEO letter on persistent debt customers
The FCA has written to credit card firms telling them to review their approach to borrowers who have been stuck in a persistent debt cycle for three years. The regulator requires firms to propose and agree plans with...
Consumer Credit Directive: Still Fit for Purpose?
We’ve written an article on the EBF conclusions on whether the Consumer Credit Directive is providing the protections it was intended to.
FCA warning to CMCs – ‘play fair with PPI claims’
The FCA has issued its latest ‘Dear CEO‘ letter, this time to CMCs in relation to PPI complaints. The FCA has recognised that lenders are facing very significant operational challenges in being able to deal...
FCA Guidance on new credit broking exemption for registered social landlords
The FCA has updated FG18/6, which provides specific guidance for registered social landlords on when they may be carrying on regulated activities, to reflect the amendment introduced earlier this year to the Financial...
FCA updates on consultations and feedback
The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...