FCA’s August Consumer Credit update

This month’s consumer credit update from FCA includes its publications in two on-going areas of work: crowdfunding and credit cards.

The FCA has published a Call for Input for its review of the crowdfunding rules implemented in 2014. This review focuses on loan-based and investment-based platforms, but the areas of concern are wide ranging in scope, from investor protections, to business models, to financial promotions.  Comments are requested by 8 September 2016, and will be used by the FCA to inform its work going forward.

The FCA’s update also mentions its publication last month of the final findings of its two years long credit card market study.  This report found some evidence of consumer detriment in a number of areas, in particular for customers with problem debt.  It therefore set out proposed remedies to address these problems, such as improved and targeted customer communications.  Some remedies may be implemented on a voluntary basis, by agreement with industry bodies; however the FCA intends to consult on introducing rules to address three key areas: unsolicited credit limit increases; earlier intervention for at risk customers; and measures to tackle customers with persistent debt.

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Roseyna Jahangir