Category Consumer Credit

FCA Regulation round – up for August

This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the authorisations of 207 firms; FCA’s agenda and priorities for consumer credit; contingency planning for firms that do not have their MIFID II permissions in place by 3 January […]

FCA sets out its supervisory approach to PPI

The FCA has today announced that it will soon be launching a campaign to inform people of the 29 August 2019 deadline for making a complaint about PPI.  The campaign will contribute to the regulatory and supervisory work the FCA has already done around PPI and will continue to do. The campaign, which will be […]

Rise in complaints for PPI

This week FOS published its regular newsletter in which it discussed: a rise in consumer credit complaints; statistics on complaints received in the first quarter of 2017/2018; and an update on PPI and the FCA’s new rules and guidance FOS’ Annual Review The annual review published earlier in the summer by FOS identified that complaints about […]

ASA unhappy at Amex ad

ASA has found a TV advert for American Express breached the BCAP rules on misleading advertising, qualification and exaggeration.  On the ad, a voiceover claimed that “there is a card that could give you 5% cashback on all purchases”. In fact, this amount was available only for the first 3 months, was subject to a […]

eba publishes fintech discussion paper

The European Banking Authority has published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and its proposals for future work on FinTech. To gain a better understanding of current FinTech activity in the EU, in spring 2017, […]

FCA consults on FAMR: implementation Part II and insistent clients

The FCA has today published its consultation paper (CP17/28) on implementing two of the recommendations made in the final report of the Financial Advice Market Review (FAMR), which was published in March 2016. FAMR was launched in 2015 by the FCA and HM Treasury (HMT) as a result of concerns that the market for financial advice in the […]

FCA feeds back on high cost credit

FCA’s response to its call for input into its review of high cost credit has concluded it will keep the HCSTC cap at its current level, but review it again within the next 3 years.  It has found an improvement in consumer outcomes since it imposed the cap, and a practice developing of offering longer […]

FCA updates on motor finance work

FCA has published further details of what it is doing to identify potential consumer harm in the motor finance market. It notes most new car finance is in the form of a Personal Contract Purchase, which is a form of hire purchase under which the value of the car at the end of the contract […]

FCA to consider whether there is a place for unarranged overdrafts in the modern banking market

In a Feedback Statement published today, the FCA stated that: they have significant concerns about how unarranged overdrafts operate. Charges are high, complex and potentially harmful. Based on the evidence they have to date, they believe there is a case to consider fundamental reform of unarranged overdrafts and consider whether they should have a place in any modern […]

FCA foresees the demise of LIBOR in favour of SONIA

Andrew Bailey’s speech today on the future of LIBOR discussed the recent developments that had been made and interestingly, the decision to move away from the benchmark and towards one that is based on factors such as the price of term funding. The FCA has had conversations with market participants, which led it to examine  alternative benchmarks and make […]