Consumer credit

Recent Articles

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  22/10/2024

  Regulation of BNPL

  On 17 October 2024, HM Treasury (“HMT”) published a consultation setting out its detailed approach to regulating the Buy-Now Pay-Later (“BNPL”) market, along with draft legislation which would bring certain deferred payment credit (“DPC”) agreements and BNPL products, which were previously exempt from consumer credit regulation, into the remit of the Financial Conduct Authority (“FCA”). The new rules will provide certainty to the rapidly growing sector and allow BNPL users to benefit from key protections offered by other consumer credit products.This...

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  30/07/2024

  Motor finance commission claims: FCA leaning towards consumer redress scheme in 2026?

  Announcements made by the FCA on 30 July 2024 suggest that motor finance commission claims could be the subject of a consumer redress scheme implemented in 2026. Whilst the FCA are keen to stress that nothing has been decided yet and various options remain on the table, a consumer redress scheme appears to be a more likely outcome than it was prior to the FCA commissioning a skilled person’s report into the motor finance market six months ago.BackgroundConsumers have been bringing complaints and claims for compensation against motor finance firms and credit brokers (including motor dealers)...

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  22/07/2024

  Key Takeaways from our AI in Financial Services Panel Event

  During our recent panel event on Artificial Intelligence (“AI”) in Financial Services, the panel explored how firms are implementing AI in practice, the application of legal, regulatory and ethical frameworks to AI, and potential challenges for firms and regulators. An audience of legal, compliance and business professionals from across the sector made interesting contributions to the debate. The session operated under the Chatham House rule, but here are some of the key takeaways from what was a fascinating discussion....

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  25/04/2024

  Spain: Parliamentary proceedings begin to create the Independent Ad­min­is­trat­ive Authority for the Defence of Financial Customers

  On April 5, the draft law for the creation of the Financial Customer Defence Authority was published in the Official Gazette of the Spanish Parliament.1. INTRODUCTIONThe current text being processed includes modifications introduced in the previous legislature´s parliamentary procedure and which were supported by the majority of MPs. These modifications include the financing of the new Authority by financial institutions and the possibility of appealing binding decisions before the civil courts, thus guaranteeing the protection of financial clients.The Authority aims to resolve complaints...

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  06/03/2024

  FCA sends Dear CEO letter to firms in warning over money laundering failings

  The Financial Conduct Authority (“FCA”) has sent a Dear CEO letter (the “Letter”) to Annex 1 Firms warning them about common failings found in their ability to prevent money laundering, terrorist financing and proliferation financing (hereafter “Financial Crime”). This forms part of the FCA’s enhanced monitoring of Annex 1 Firms in relation to their Financial Crime controls and its increasingly proactive approach in enforcing its regulatory expectations.The FCA is asking Annex 1 Firms to carry out a gap analysis against the failings it has identified...

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  12/10/2023

  Supreme Court provides importance guidance on limitation in the context of “unfair re­la­tion­ship” claims under sections 140A-C of the Consumer Credit Act 1974

  The recent Supreme Court judgment in Smith and another v Royal Bank of Scotland plc [2023] UKSC34 is an important decision for all lenders in the context of claimants seeking relief as a result of an alleged “unfair relationship” under sections 140A-C of the Consumer Credit Act 1974 (“CCA”). The appeal related to customers who had entered credit card agreements and related PPI policies but the decision has wider implications for all credit agreements subject to the CCA.The key issues arising from the judgment are as follows:Limitation and delay1. A claim for a remedial order...

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