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.