Consumer credit

Recent Articles

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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...
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    21/06/2023

    Change is on the horizon for consumer credit and mortgage firms

    On 25 May 2023, the Financial Conduct Authority published a consultation paper on strengthening protections for borrowers in financial difficulty. The FCA intends to move some of the Tailored Support Guidance (TSG) which was introduced during the coronavirus pandemic into CONC and MCOB so that firms will continue to support customers facing financial difficulty. It will then withdraw the TSG. However, it is not quite as simple as that. The FCA has taken the opportunity to propose a number of additional changes for consumer credit and mortgage firms, some of which will be quite onerous for firms...
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    09/03/2023

    Application of the FCA Consumer Duty to Motor Finance Providers

    On 1 March 2023, the FCA published a portfolio letter on “Implementing the Consumer Duty in the Motor Finance Providers Portfolio”. The letter introduces a more outcomes-focused approach to consumer protection and reiterates that the FCA expects implementing the Consumer Duty to be a top priority for the CEO (or directors) personally. They need to ensure that good outcomes for customers are at the heart of the firms' strategy and business objectives, and firms' boards and senior management should embed the interests of customers into the culture and purpose of their firms....
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    01/03/2023

    Regulation of BNPL

    On 14th February 2023, HM Treasury (“HMT”) opened a consultation on the government’s draft legislation to regulate certain types of currently exempt interest-free “Buy-Now Pay-Later” (“BNPL”) products. This follows an initial announcement in February 2021 of the intention to regulate, and the first consultation launched in October 2021, to gather stakeholder views on a proportionate regulatory approach.The government’s proposed legislation will bring these products under the regulatory regime of the Financial Conduct Authority (“FCA”)....
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    17/06/2022

    Consumer Credit Act to be reformed

    What will change? The government intends to: Move much of the CCA from statute to sit under the Financial Conduct Authority (“FCA”). This will better place the FCA to respond swiftly to developments in the market rather than persevering with the long process of amending existing legislation. Simplify technical terms so that consumers will more easily understand the protections they have and are entitled to. Ensure it is easier and less costly for businesses to comply. The reforms are likely to enable lenders to provide a wider range of finance while ensuring high levels of consumer...
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    17/06/2022

    Lenders told to support consumers struggling with the cost of living

    Treating customers fairly Treating customers fairly, both old and new, is the prominent theme of this “Dear CEO” letter, with the FCA highlighting that the impact on customers will not just be financial but can impact their physical and mental health. Promoting fair outcomes is of utmost importance. The FCA reiterates that its principles surrounding fairness set the standard it expects of firms, as well as rules relating to mortgages and consumer credit for customers in financial difficulty (MCOB 13, CONC 5D, 6, and 7, respectively). It also suggests that previous tailored support guidance...
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