FCA consults on consumer contract variations

FCA is consulting on guidance for firms setting out what factors under the Consumer Rights Act they should take into account when they are drafting and reviewing variation terms. The draft guidance sets out a list of things FCA says firms should take into account, which would include:

  • how valid the reason for variation is
  • transparency of the term
  • provision for notice and
  • whether the customer can exit the contract if they do not agree the variation

It also sets out FCA’s views on some common practices. FCA seeks views by 7 September.