Lucy HadrillIn Bank of Beirut (UK) Ltd v Moukarzel [2021] EWHC 3777 (Comm), the High Court considered the Bank of Beirut (UK) Ltd’s (Bank’s) application for summary judgment in respect of a counterclaim brought against...
Category - Consumer Finance
Harshil Patel
Emma RadmoreFCA publishes portfolio letter to debt advice firms
FCA has published its Dear CEO letter to the debt advice portfolio, updating its letter of 2020. Most of the messages are similar to those it has given to the mainstream consumer credit lenders, specifically the focus...
Ruling on costs in collective damages action
Following the latest judgment in the matter of Merricks v Mastercard, the CAT has now given a ruling on costs. The ruling concerns: The costs between 19 August 2021 and 9 March 2022 – Mastercard submitted that the...
Rawa HussainFCA Portfolio letter for Mainstream Consumer Credit Lenders
On 27 June 2022, the FCA published a portfolio letter setting out its supervisory strategy for mainstream consumer credit lenders (MCCLs). In the letter, the FCA outlined the key risks of harm for MCCL firms, their...
Treasury confirms BNPL proposals
Treasury has published its consultation response to its plans for regulating the buy-now-pay-later credit market. It has confirmed that: lenders offering BNPL will need to be authorised by FCA; lenders will need to...
Upper Tribunal confirms compensation and validation possible for credit breaches
In its recent decision, the Upper Tribunal drew a distinction between the compensation regime available to consumers under section 28(2) of FSMA and the enforceability of a regulated credit agreement under section 28(3)...
FPC withdraws mortgage affordability test
FPC has confirmed that it will withdraw its Recommendation on mortgage affordability with effect from 1 August. The current test specifies a stress interest rate for lenders when assessing borrowers’ ability to...
FCA tells lenders to support customers with the cost of living
FCA has written to over 3,500 lenders to remind them of the standards they should meet as consumers across the country are affected by the rising cost of living. Firms are expected to understand the changing pressures...
Government commits to Consumer Credit Act reform
The Government has announced its commitment to seeking reform of the rules contained in the Consumer Credit Act 1974 (the CCA) in an effort to modernise them, cut costs for business and ensure the rules are easier for...
Duncan ScottFCA consults on strengthening access to banking
FCA has warned that some banks and building societies are not currently doing enough to properly understand the impact of branch closures, ATM conversions or service reductions and to keep their customers informed of...
Council adopts new rules on EU regulation of consumer credit
The Council has published its agreed position on the revision of the Consumer Credit Directive (Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and...
FCA publishes quarterly consultation
The FCA’s latest quarterly consultation covers: a minor amendment to DEPP to reflect changes to the FCA’s decision-making processes implemented on 26 November 2021; amendments to the Compensation rules relating to...
High Court approves Amigo scheme of arrangement
The High Court has approved the scheme of arrangement that will provide redress for customers who were mis-sold loans by Amigo and who have raised a complaint. FCA has reiterated that the scheme is an improvement on the...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
Mastercard refused leave to appeal on “date of domicile”
The Competition Appeal Tribunal has refused Mastercard leave to appeal on the issue of what the “domicile date” should be in the Collective Proceedings Order granted in the collective action brought by...
EU Commission consults public on impact of PSD2 and open finance
The Commission has launched a public consultation seeking views on the impact that the Second Payment Services Directive (PSD2) has had on: innovation and competition in the market for payment services; the way in which...
New proposal for distance selling of financial services
Following its request for feedback last year, the European Commission has adopted reforms of the current EU rules concerning financial services contracts concluded at a distance. The proposal aims to simplify and...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
FCA warns firms to stop using misleading credit ads
The FCA has written to c.28,000 consumer credit firms warning them not to use terms such as ‘no credit check loans’, ‘loan guaranteed’, ‘pre-approved’ or ‘no credit...
LSB publishes its 2022/23 Business Plan
On 3 May 2022, the Lending Standards Board (LSB) published its Business Plan and Budget for 2022/23. in the plan, the LSB sets out its strategic priorities and provides further information on the activities it intends...
Government sets out approach to protecting wholesale cash infrastructure
HM Treasury has published its policy statement on protecting UK wholesale cash infrastructure. The government intends to create an oversight regime which will: give the BoE oversight over, and the ability to regulate...
Funeral plans update: RAO amendments made
The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for...
Court finds mortgage loan not “by way of business”
The High Court has handed down its judgment in the case of Arthistory Ltd and Mr and Mrs Campbell. The Campbells own a property and had granted an option to Arthistory (the Claimant) to acquire it. The Claimant sought...
FCA to remove credit broker permissions
FCA has published its first supervisory notice against Semantic Business Services Ltd, a secondary credit broker. It plans to remove the firm’s permissions because: the firm has links with a number of other firms...
FCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA confirms non-opposition to Amigo scheme
FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...
CMA publishes Annual Plan for 2022/23
The CMA has published its Annual Plan which explains how it will protect consumers, promote competition and help support the economy in the year ahead. It aims to encourage innovation, productivity, and sustainable...
FCA speaks on credit regulation in tough times
Brian Corr, Interim Director of Retail Lending at FCA delivered a speech on 23 March 2022 to the Credit Summit addressing the impact credit will have on consumers as the economic situation continues to deteriorate and...
Treasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
Government introduces Online Safety Bill to parliament
The government has agreed to make changes to the Online Safety Bill and has now introduced the Bill into the Commons. The government has also responded to the Joint Committee on draft Online Safety Bill’s report...
APP Fraud and the extent of the Banks Duty – to be determined at trial
In the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318, the Court of Appeal has allowed the appeal from Mrs Philipp against the decision of the High Court in 2021 to give judgment to Barclays Bank UK plc on...
Scott NodderCAT determines the ‘domicile date’
CAT has published its Judgment giving further guidance on the ‘domicile date’, which is the date specified in a CPO. The domicile date operates to determine the persons who fall within the class definition...
Jonny WilliamsFCA publishes lender portfolio letters
FCA has published its most recent porfolio strategy letters for: retail mortgage lenders; non-bank lenders; and building societies. Common themes in the letters are: that the response to the pandemic has shown FCA and...
High Court rules on application of CCA ‘business purpose’ exemption to multi-borrower loans
In Campbell v Tyrrell & Ors [2022] EWHC 423 (Ch), the high court considered the application of the ‘business purpose’ exemption in s.16B(1) of the Consumer Credit Act 1974 (the “CCA“) to a...
Government launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
FCA portfolio letter for Credit Unions
The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...
FCA comments on Amigo Scheme proposal
FCA has published a letter that it wrote to Amigo Loans confirming that it does not plan to attend the hearing to oppose the proposed Scheme of Arrangement. It thinks the new proposals are preferable to the ones in the...
LSB sets its agenda for 2022
The latest LSBulletin outlines some of the LSB’s key areas of focus for 2022, including: Contingent Reimbursement Model Code (CRM Code) for APP scams – the LSB will be conducting follow up work from its previous...
FCA launches claims management companies fees cap
FCA has introduced restrictions on claims management companies (CMCs) to prevent excessive charging of fees to consumers owed compensation from financial services firms. The cap on charges is dependent on how much...
FPC publishes consultation to withdraw affordability test
On 28 February 2022, the Financial Policy Committee (FPC) published a consultation to seek the views of interested parties on the proposal to withdraw the affordability test. The consultation, in particular, asks the...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
LSB publishes thought piece on supporting customers
The Lending Standards Board (LSB) has published a thought piece looking at the UK’s cost of living crisis and how firms can support customers in pre-arrears and financial difficulty. The thought piece identifies...
Emma BondUK Finance publishes response on Consumer Duty
UK Finance has published its response to the FCA’s second consultation on proposals for a new Consumer Duty. UK Finance welcomes the changes FCA has made since its first consultation (in particular dropping the...
FCA updates on funeral plans
The FCA has published a statement on assessing authorisation applications from funeral plan providers. The assessment process is to ensure that: firms sell products which offer fair value, meet consumer needs and are...
FCA gets BNPL firms to change contract terms
FCA has secured voluntary agreement from Clearpay, Klarna, Laybuy and Openpay to make changes to terms in their contracts. Although FCA does not yet regulate the contracts, it used its powers under the Consumer Rights...
FCA orders firm to remove influencer ads
FCA has published a second supervisory notice to confirm that it is not rescinding the directions imposed on Freetrade Limited in its first supervisory notice dated 14 December 2021. Freetrade must therefore immediately...
ECON publishes draft opinion on consumer credits proposal
On 1 February 2022, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a draft opinion on the European Commission’s legislative proposal for a Directive on consumer credits to...
FCA publishes 2022 retail banking model update
FCA has published its 2022 final report on competition in retail banking business models, following on from its 2018 reports. As a result of the 2018 reports there were a number of regulatory changes, specifically to...
FCA updates on borrowers in financial difficulty
The FCA launched the borrowers in financial difficulty (BiFD) project in March 2021, with the aim of ensuring firms continue to support borrowers facing financial difficulties. The project covers a range of retail...
EBA confirms Covid-19 related reporting and disclosure requirements will continue
In response to the ongoing Covid-19 pandemic, the EBA has confirmed that the Guidelines on the reporting and disclosure of exposures subject to measures applied in response to Covid-19, which were first adopted on 2...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
UK Finance responds on BNPL consultation
UK Finance has published its response to HM Treasury’s consultation on the regulation of BNPL products. The response shows that there is a consensus amongst UK Finance members: that BNPL products should be brought...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
UK banks join forces to preserve access to cash
Further to their commitments to continue to preserve access to cash for consumers and businesses, the UK’s major retail banks, consumer groups, Post Office and LINK have agreed to collaborate to share services...
FCA publishes second consultation on Consumer Duty
Following its initial consultation in Q2 this year (CP21/13), the FCA has set out the responses it received and has published a second consultation on its plans for a new Consumer Duty (CP21/36). The FCA received 235...
FCA publishes mortgage prisoner review
FCA has laid its mortgage prisoner review before Parliament. The review sets out data that will help the Government consider whether any practical and proportionate solutions could help these borrowers. FCA’s data...
EU consults on Mortgage Credit Directive review
The European Commission is seeking views on whether the Mortgage Credit Directive remains fit for purpose. The review will assess whether the existing framework can adequately deal with new challenges such as...
FCA consults on debt packager referral fees ban
The FCA is proposing new rules to ban debt packagers from receiving referral fees from debt solution providers. The proposals follow concerns that consumers are receiving non-compliant debt advice that is biased towards...
Commons Library publishes “Black Friday promotions” paper
The House of Commons Library has published a research briefing on the promotion and regulation of financial products on Black Friday. A debate has been scheduled for 23 November and has been initiated by Stella Creasey...
FCA writes to funeral plan providers
The FCA has published a Dear CEO letter on applying for authorisation as a pre-paid funeral plan provider or intermediary. The letter provides the following information to support firms’ preparations for...
FCA confirms final rules on funeral plans regulation
Following its consultation earlier this year, the FCA has published its final rules on the regulation of pre-paid funeral plans which will take effect from 29 July 2022. The latest policy statement sets out additional...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
FOS publishes feedback on outcome reporting consultation
FOS has published the feedback to its consultation which set out the proposed temporary amendments to the way the FOS reports business-specific complaints data. As a result of the feedback the FOS has confirmed it will...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
Treasury consults on BNPL
Treasury has published the long-awaited consultation on buy-now pay-later regulation, following the announcement on 2 February that the Government would implement the Woolard Review recommendation to bring interest free...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
ESMA seeks stakeholder input on retail consumer protection
The European Securities and Markets Authority (ESMA) today publishes a call for evidence on a number of retail investor protection topics under MiFID II. ESMA is seeking information from stakeholders on three topics:...
Cynthia MaGovernment publishes Payments Landscape Review
The government has published its response to the 2020 Payments Landscape Review: Call for Evidence. The relevant consultation, which ran from 28 July 2020 to 20 October 2020, sought views from across the sector to be...
FCA looks at next steps in consumer credit regulation
Nisha Arora has spoken on FCA’s priorities in regulating consumer credit. She noted that FCA has significantly improved outcomes for consumers using credit since FCA took over its regulation, but that there is...
CMA welcomes new power to tackle competition and consumer law breaches
The Competition and Markets Authority (CMA) welcomes the Government’s proposals in publishing its responses to the two recent consultations: “Reforming competition and consumer policy“ and “A new...
FOS consults on reporting complaints outcomes
FOS is consulting on a range of initiatives to help reduce customer waiting times, including a temporary proposed change to how firm-specific complaints data is published. FOS is proposing that, for a limited period...
FCA updates rules on credit card instalment plans
FCA has issued its latest Handbook update, which confirms: changes to CONC, effective from 1 October, so firms can offer a greater variety of fixed instalment plans in their credit card products. FCA has routinely been...
Treasury answers questions on BNPL and pension transfer advice
Published answer to written questions include: in answer to a question on when the BNPL legislation will be put forward, Lord Agnew said there would be a consultation document “soon”; in answer to a question...
FCA warns on credit intermediary application delays
FCA has updated its webpage on how to apply for authorisation to warn firms that it is receiving an extremely high volume of applications from credit intermediaries, such that allocating a case officer is taking up to 6...
Ombudsman News looks at fraud and scam complaints
The latest edition of Ombudsman News warns customers to be extra vigilant about fraud and scams following a significant rise in cases seen by the FOS in the last 12 months. The FOS received 5,025 fraud and scam...
EBA to enhance monitoring of digital platform use in EU banking and payments sectors
A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector: identifies the rapid growth in...
Tech companies join banking industry in fight against fraud
Several major technology companies including Google, Facebook, Instagram, Twitter, Amazon, Microsoft and TikTok have pledged to support UK Finance’s anti-fraud campaign – Take Five to Stop Fraud. The tech...
PSR panel publishes annual report
The PSR panel has published its annual report for 2020/21 which outlines how it has engaged with the PSR over the last year. Key themes that the panel highlighted over the last 12 months include the rapid acceleration...
FCA publishes consumer investment strategy
The FCA has published a new strategy to give consumers the confidence to invest and to tackle investment harm. By 2025, the FCA aims to: reduce by 20% the number of consumers who could benefit from investment earnings...
FCA mortgage guidance to expire in October
In October 2020, the FCA introduced temporary guidance on maturing interest-only and part-and-part mortgages. The guidance allowed borrowers with certain mortgages due to mature between 20 March 2020 and 31 October 2021...
FCA writes to mortgage third party administrators
The FCA has written to mortgage third party administrators (TPAs) to set out its view of the key risks TPAs pose to their customers or the markets in which they operate and to outline its expectations of TPAs, including...
FCA responds to Treasury on frozen bank accounts
Nikhil Rathi has responded to Rt. Hon. Mel Stride MP’s questions following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. Highlights of the...
Next steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
FCA updates on regulating the funeral plans sector
The FCA has updated its webpages on regulating the funeral plans sector to set out what firms should be doing to prepare for FCA regulation on 29 July 2022. It has also published the authorisation and variation of...
FCA resumes work on Credit Information Market Study
The FCA has restarted its work on the Credit Information Market Study following a pause during the Covid-19 pandemic. It intends to engage with industry and consumer groups and complete its analysis during Q3 2021...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
Treasury writes to FCA over frozen bank accounts
The Chair of the Treasury Committee, Rt. Hon. Mel Stride MP, has written to Nikhil Rathi following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. The...
FCA outlines mortgage prisoners review
The FCA has published the terms of reference setting out the steps it will take in its mortgage prisoners review. Data review: the FCA will review and update its data to consider the demographic and loan characteristics...
Government responds to questions on access to cash
Sir Greg Knight MP asked what steps the government is taking to help ensure that (a) vulnerable people, (b) the elderly and (c) people living in rural areas continue to have access to cash. In response, John Glen MP...
FCA updates on workstreams
The FCA has provided updates on the following 4 workstreams: Assessing Suitability Review (ASR 2) – ASR 2 was placed on hold in April 2020. The FCA has decided not to continue planned work on ASR 2 in 2021/22. This will...
FCA to survey preparedness for GI pricing changes and use of credit broking permissions
The latest edition of “regulation round up” notes that FCA is shortly to ask a sample of insurers, insurance intermediaries and PCWs to complete a short survey to say how ready they are for the new general...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
FCA concerned on Provident scheme of arrangement
The FCA has published a second letter of concerns explaining to Provident why it does not support its proposed scheme of arrangement. The FCA’s key concern is that consumers are being offered significantly less...
G20 Finance Ministers and Central Bank Governors meeting
The G20 Finance Ministers and Central Bank Governors (FMCBGs) have had their third official meeting under the Italian G20 Presidency. Highlights include: The global outlook has improved, mainly thanks to the roll out of...
FCA publishes financial promotions case studies
The FCA has published two video case studies which show examples of good and bad practice when promoting financial services and which set out the FCA’s expectations for promotions to be clear, fair and not...
FCA urges consumers to protect pension savings
Following its response to the Work and Pensions Committee’s report on protecting pension savers from pension scams, the FCA is urging consumers to be wary of pension scams and to protect their savings. The FCA...
PRA policy statement on IRB approach to UK mortgage risk weights
Following its consultation in October last year, the PRA has published a policy statement on its proposed rules changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. The...
FCA confirms new rules on regulation of funeral plans
The FCA has confirmed the rules funeral plan providers will have to follow when they come under regulation from 29 July 2022. The rules (currently still in draft form) mean: funeral instalment plan products will always...
UK and Singapore agree landmark Financial Partnership for financial services
An historic new partnership for financial services between the UK and Singapore, which will help to boost jobs and investment in the UK, has been agreed by the Chancellor. The Financial Partnership is a new agreement...
Hannah FrostEBA report: management and supervision of ESG risks for credit institutions and investment firms
The EBA has published its Report on Environmental, Social and Governance (ESG) risks management and supervision. The report provides institutions with common definitions of ESG risks and their transmission channels and...
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