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FCA publishes finalised guidance on fairness of variation terms in FS contracts

The FCA has today published finalised guidance (FG18/7) setting out what it believes firms should consider under the Consumer Rights Act 2015 when varying a term in their consumer contracts.

The guidance includes a list of non-exhaustive factors for determining whether or not a variation term is fair. For example:

  • Has the firm included the variation term to achieve a legitimate purpose?
  • Are the reasons objective?
  • Are the reasons clearly expressed?
  • Does the term strike a fair balance overall between the legitimate interests of the firm and the legitimate interests of the consumer?

The guidance and a summary of feedback to the consultation can be found here.

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FIN. Team