The FCA has today (1st July 2020) confirmed the new guidance for firms on how they treat consumer credit customers who are still experiencing financial difficulties due to Covid-19. The new guidance comes in to force on...
Category - Consumer Finance
Natasha BrownleeEuropean Commission consults on consumer credit agreements
The European Commission is consulting, as part of its review of EU consumer policy, on the Consumer Credit Directive. It wants to review the Directive in light of the recent evaluation which highlighted a number of...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
Emma RadmoreFCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
FCA Update on Mortgage Prisoners
The FCA has updated their webpage relating to the implementation group on changes to deliver switching options for mortgage prisoners. The update includes details of a meeting held on 1st May 2020 which confirmed that...
Jonny WilliamsEuropean review of Consumer Credit Legislation
The European Commission published a roadmap looking at reviewing the European Consumer Credit Directive. The feedback period for the roadmap is open from today until 1 September 2020. The review focuses on the following...
FCA Publishes COVID-19 guidance for loan providers
The FCA published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until 5pm on 22 June 2020...
FCA updates COVID-19 guidance for overdraft providers
The FCA has, this morning, published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until...
Covid-19: EP eases rules to encourage lending to companies and households
Members of the European Parliament (“MEPs“) have approved more flexibility in EU banks’ prudential rulebook to focus on lending to the Covid-19-stricken economy. Aiming to strike a balance between a robust...
Amelia GreenFCA updates COVID-19 guidance for credit card providers
The FCA has, this morning, published its draft guidance clarifying the continued treatment of customers experiencing temporary financial hardship due to COVID-19. The FCA is welcoming comments on the proposals until...
EBA extends payment moratoria deadline
EBA will extend the application date of its guidelines on payment moratoria to 30 September, as economies gradually re-open. It says the extension will ensure that adequate treatment for borrowers is available across...
FCA updates mortgages Covid-19 page
FCA has updated its website on its finalised guidance for firms on mortgages and Covid-19. The updates are minor, making a few clarifications only, mainly to confirm that firms that could not provide personalised...
Identity of lenders in peer-to-peer lending platform protected by Chancery Appeals Court
In Andrew Milne v Open Access Finance Ltd [2020] EWHC 1420 (Ch) the Court rejected an appeal against the making of a representative order under CPR r. 19.6 but allowed the appeal challenging the identity of that...
Scott NodderFCA publishes equity release review
FCA has published the results of its review into how the equity release market is working for consumers. The review found that equity release can be an attractive option for some consumers, and that it is working well...
Randell speaks on supporting the recovery
Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...
FCA fines £64m for mortgage arrears handling failures
FCA has fined Lloyds Bank, Bank of Scotland and the Mortgage Business £64,046,800 for failures in relation to handling of mortgage customers in payment difficulties or arrears between April 2011 and December 2015. The...
£38m support for debt advice
The Government has announced a nearly £38m support package for debt advice providers, to help them to provide essential services to people who have struggled with their finances because of Covid-19. The Money and...
FCA publishes Covid-19 guidance for SMEs
FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...
EVENT: Retail Banking Mixer Webinar
Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am. We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19. Our...
FOS publishes 2019/20 data
FOS has published details of the complaints it received and dealt with in 2019/2020. It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions. As ever, the...
Compulsory FCA survey coming to firms
FCA is to send a survey by email with a link to 13,000 solo regulated firms, aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...
UK Finance reports payment holiday figures
UK Finance statistics show that, as of 21 May, their members report that: 877,800 customer accounts had been given a payment freeze on their credit cards, an increase of 25% from the start of the month; nearly 680,000...
PRA publishes FAQs on property valuations
PRA has published a set of Q&A on CRR requirements for property valuations during the disruption caused by Covid-19. Firms have been asking questions on how they shoudl deal with the difficulties in conducting...
UK Finance comments on FCA mortgage proposals
UK Finance has responded to FCA’s consultation on what firms should be doing as the next stage of helping customers in financial difficulties due to Covid-19 with their mortgages. While, of course, UK...
Regulator Covid-19 update 22 May
After a relatively quiet week, on 22 May: FCA announced further support for customers struggling to pay mortgages due to Covid-19. It is consulting on what options firms will need to provide to customers reaching the...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
PRA responds on retirement interest-only mortgages and default
PRA has provided its feedback following responses to its consultation on prudential treatment of retirement interest-only mortgages, and on credit risk: probability of default and loss given default estimation. Tt has...
FCA updates on Covid-19 and complaints
FCA has updated its webpage on how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...
FCA gives lending application guidance
FCA has updated its webpages giving guidance to applicants for authorisation, The latest updated page includes a sample business plan for consumer credit business, with guidance for different types of firms, and...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
Government sets out equivalence views
John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services. The Government cannot provide great detail given the early stage of...
FCA updates on CBILS and BBLS expectations
On 4 May: FCA updated its statement about the CBILS and BBLS confirming that its position that lenders who comply with CBILS do not also have to comply with the creditworthiness rules in CONC 5.2A.4-34 where the...
Regulator Covid-19 update 1 May
On 1 May, FCA: announced proposals for a Court declaration on business interruption claims proposed guidance for insurers on assessing whether products still offer value and appropriate action to take where they do not...
FCA publishes skilled person data
FCA has publicised the number of skilled persons reports commissioned in January to March 2020. It commissioned 24 in total, of which 9 related to retail banking and 6 to retail lending. 6 of the reports were on...
Tribunal rules against FCA on cancellation decision
The Tribunal has ruled on a case brought by Financial Services (Euro) Ltd against FCA. FCA had decided to cancel the firm’s permission because it had no PII cover. The firm contended that FCA was aware that the...
FCA confirms more temporary relief measures
As expected, FCA has confirmed it will be going ahead with the measures it has consulted on to support customers facing difficulties in making payments on motor finance, buy-no-pay-later, rent-to-own and pawnbroking...
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
Covid-19: Draft temporary guidance on rent-to-own, buy-now pay-later and pawnbroking agreements
The FCA published draft guidance for regulated firms that enter into rent-to-own (“RTO“), buy-now pay-later (“BNPL“) (as defined in the FCA Handbook), or pawnbroking agreements today. The...
Covid-19: Draft temporary guidance on HCSTC
Today, the FCA published draft guidance for regulated firms that enter into high-cost short-term credit (“HCSTC“) loans, including payday loans. The guidance also applies to firms that have acquired such...
FCA publishes complaints figures for H2 2019
The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...
FOS updates on Covid-19 activities
The latest edition of Ombudsman News focuses on: how it is working to help complainants during the Covid-19 crisis, including on how it has changed its helpline hours – for which it apologises but asks that it...
Personal Loans and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. Who does the rules apply to? It applies to all personal loan customers who are already experiencing or reasonably...
Personal Credit Cards and Coronavirus: New Rules
As noted earlier, the FCA has published the new rules that firms require to implement by 14 April 2020. Who does the rules apply to? It applies to all credit card customers who are already experiencing or reasonably...
FCA confirms new measures for retail banking customers
Following the emergency consultation launched last week, this morning, the FCA has confirmed the range of temporary relief that must be implemented by firms by 14 April at the latest. The new rules require that, where...
FCA consults on fees
FCA has published its fees and levies proposals for 2020/2021. Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees. Comments are...
FCA Business Plan 20/21
The FCA published its business plan for the coming year this morning. The plan focuses around 5 key priorities for the year. It has been significantly reshaped because of coronavirus as it was intended to show the...
Regulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
Regulator Covid-19 Update 2 April
On 2 April, the main regulatory initiative was FCA’s emergency consultation on consumer protection measures in the regulated lending markets. Also: PRA and Treasury confirmed the delay of Basel 3.1 by one year...
Parliament Committee seeks equivalence answers
The Third Report of Session of the House of Commons European Scrutiny Committee seeks clarification on the Government’s intentions for negotiations of equivalence arrangements with the EU from the end of the...
FOS confirms case fees and releases 2020/21 budget
FCA has confirmed FOS’ 2020/21 budget. Key elements include: continuing to allow 25 “fee” cases for firms outside the group account fee arrangement – so 90% of firms will pay no case fees; 50...
In-action is a breach of duty and amounts to concealment for Limitation defences
In Canada Square Operations Ltd v Mrs Beverley Potter [2020] EWHC 672 (QB) , the High Court heard an appeal by the creditor against the decision of Mr Recorder Rosen QC. In the decision it was found that the creditor...
FCA updates mortgage firm Covid-19 guidance
FCA had provided additional guidance to mortgage firms on payment holidays relating to Covid-19. We reported in this post on the original guidance. FCA has previously required firms to offer payment holidays if they...
Regulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
Contactless limit increasing
UK Finance announced today that the card transactional contactless limit will be increasing from £30 to £45 with the roll out starting on 1 April. The changes may take a while for retailers to implement, especially...
FOS looks at insurance coverage
FOS’s latest Ombudsman News looks at: coronavirus: so far, FOS has not seen many complaints on the impact of the virus, but expects it will see more complaints particularly in relation to travel insurance, medical...
Invalidly executed deeds of guarantee still enforceable
In Signature Living Hotel Ltd v Sulyok [2020] EWHC 257 (Ch), the High Court was asked to consider whether two deeds of guarantee were enforceable in circumstances where the signature of the director of the surety had...
Bank of England slashes interest rate in response to Covid-19
The Bank of England (“BoE”) has reduced the Bank Rate by 50 basis points to 0.25%. The aim of the reduction is to help support business and consumer confidence amidst the Covid-19 outbreak, to bolster the...
Rachael PrestonFCA publishes mortgage switching research
FCA has released its latest report on mortgage switching, from which it concludes there is a case for intervening to help customers who do not switch. It has found that the reasons people have for not switching...
UK Finance shines a spotlight on resolving Section 75 claims
UK Finance has published a blog post on resolving Section 75 claims made in relation to failed home improvements. It explains that due to the significant number of contractors ceasing to trade each year (nearly 80,000)...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
ECB Speech: Climate Change in FS
Christine Lagarde made a speech on climate change and the financial sector on 27 February 2020. Christine identified both the threat and significant opportunity caused by climate change. She urged central banks to...
Mental Health: Practical Guide
The Money and Mental Health Policy Institute and the Money Advice Trust have jointly created a practical guide to understanding and evidencing customers’ mental health problems. The guide is aimed primarily at...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
FSB priorities published
The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on. All of the measures are to...
MPs debate Consumer Rights Act 2015 and Consumer Ombudsman Scheme
Last week, MPs debated the Consumer Rights Act 2015 and the Consumer Ombudsman Scheme (COS) in the House of Commons. Sir Roger Gale chaired the 30 minute debate brought by Martyn Day (SNP) who previously raised the Act...
Lucy HadrillFCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
FCA bans motor finance ads
FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited. The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...
Unfair Treatment lands Moneybarn big fine
The FCA announced today that it was imposing a £2.77 million fine on Moneybarn Limited for not treating customers fairly between 1 April 2014 and 4 October 2017. The car finance provider had failed to provide adequate...
FCA speech on penalties, remediation and General Principles
On 12 February, Mark Steward, Executive Director of Enforcement and Market Oversight made a speech at an event on Investigations and Enforcement: A Guide to Managing Regulatory Action. Key takeaways from the speech...
Regulators warn firms on selling personal data
The FCA, ICO and FSCS have warned regulated firms and insolvency practitioners of the need to be responsible when dealing with personal data. The regulators have become aware of sales of client data to CMCs either...
Goods Mortgages Bill: First Reading
The Goods Mortgages Bill which we talked about in a previous post, has now had its first reading in the House of Lords. If it becomes law it will: create a new form of non-possessory security that can be created over...
Breathing space to help millions in debt crisis
The government has today, 6 February, Time to Talk Day, published its impact assessment for “breathing space”, a scheme designed to help millions of people in debt crisis, including those suffering with...
FCA writes Dear CEO letter on persistent debt customers
The FCA has written to credit card firms telling them to review their approach to borrowers who have been stuck in a persistent debt cycle for three years. The regulator requires firms to propose and agree plans with...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
Government writes to UK Finance on mortgage prisoners
John Glen has written to UK Finance setting out the possibilities for mortgage prisoners to switch deals. FCA data shows that 170,000 borrowers whose mortgages are in closed books or owned by unregulated firms are...
DExEU updates on FS equivalence post-Brexit
The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services. The documentation notes that temporary equivalence decisions are...
Progress update on PSR’s work
Chris Hemsley, Managing Director of the Payment Systems Regulator (PSR) delivered a speech at last week’s Westminster Business Forum: Payments, policy and regulation – infrastructure, innovation and end-user...
EU to prioritise green deal and MLD5 implementation
In his opening remarks to the ECOFIN conference, Valdis Dombrovskis, handing over to the new Croatian Presidency, singled out as key developments: the Green Deal or Sustainable Europe Investment Plan, the success of...
CMA publishes update on loyalty penalty progress
Following the Citizens Advice super-complaint to the CMA about the loyalty penalty (when companies charge longstanding customers more than new customers or those who renegotiate their deal), the CMA identified a...
Financial institutions raise concerns about PRIIPs RTS review
Insurance Europe, AMICE, the EBF and EFAMA (the Group) have raised concerns about The Joint Committee of the European Supervisory Authorities (the ESA’s) consultation on potential changes to the regulatory technical...
FSCS announces Plan and Budget
FSCS has published its full Plan and Budget for 2020/2021. As well as the indicative levy of £635m (£87m more than the current year, mainly because of a rise in SIPP operator claims) and management expenses budget of...
Up next from FCA
FCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...
Consumer Credit Directive: Still Fit for Purpose?
We’ve written an article on the EBF conclusions on whether the Consumer Credit Directive is providing the protections it was intended to.
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EU reaches political agreement on crowdfunding measures
The EU Council and Parliament have reached a provisional political agreements on the Commission’s proposal for legislation to boost crowdfunding in the EU. The framework is the 12th of the 13 pieces of the CMU...
Regulators update on climate change action
UK and EU regulators have published papers on the regulatory response to the risks of climate change. the BoE has published a discussion paper on how it proposes to carry out its “biennial exploratory...
EVENT: Retail Banking Mixer
Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...
FPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
FCA calls for input on open finance
FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products. FCA has a vision that open finance will allow consumers and...
FOS consults on plans and budget
FOS has published its consultation on its strategic plans and budget for 2020/2021. Next year, it expects to receive 245,000 complaints and resolve 290,000 (just under half in each case relating to PPI). It expects to...
Up next from FCA
FCA’s latest Policy Development Update indicates several key publications scheduled for Q1 2020, including: potential policy statement on general insurance value measures reporting; consultation or discussion...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
Roseyna JahangirComplaints Commissioner publishes responses
The Complaints Commissioner has: ordered FCA to pay compensation (but of a very small amount – adding £250 to the £50 already offered by FCA) to a complainant whose application for authorisation ran out of time...
Banks told to refund customers after CMA action
The CMA has taken action against HSBC and Santander after they broke an Order requiring them to send customers text alerts before banks charge them for going into an unarranged overdraft, giving them time to take action...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
Responsible Lending Changes Implementation Group meeting
Further to their last meeting, the FCA reported today that the responsible lending changes implementation group had met again on 25 October. This meeting which was held in advance of publication of the policy statement ...
Financial Inclusion
On Tuesday night, we hosted our first ever Talking Money event in partnership with the Scotsman newspaper in our Edinburgh office. The event focused on the topic of tackling financial exclusion in Scotland. The...