The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
Category - Consumer Finance
Emma RadmoreFCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
Lucy HadrillBanking industry supports access to cash
UK Finance and the UK’s largest retail banks and building societies have announced their commitment to continue to preserve access to cash for consumers and businesses over the long term. The 8 financial...
Treasury clarifies CIS exemption for P2P operators
Treasury has amended the FSMA (CIS) Order to clarify that the exemption that means operators of peer-to-peer lending platforms are not operating CIS when they carry out activities closely associated with platform...
FCA to issue credit broking permissions survey
FCA is asking regulated firms that hold the credit broking permission to complete a short survey to update the information FCA holds on how they are using this permission. A pilot survey will be sent to 300 firms on 20...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
Breathing Space scheme takes effect
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 took effect on 4 May 2021. The scheme aims to help millions of people in debt crisis get...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
Court considers “by way of business” test
The High Court has considered the scope of the “by way of business” test for the purposes of FSMA. Mr and Mrs A were involved in property development. They took a loan from a Mr P when they were unable to...
House of Lords publishes financial exclusion report
The House of Lords Liaison Committee has published its third follow-up report, “Tackling Financial Exclusion: A country that works for everyone? Follow-up report.” The report analyses the progress made by...
Duncan ScottFCA speaks to FLA on post-Covid regulation
Charles Randell, Chair of FCA and PSR has given a speech to the Finance & Leasing Association in which he outlined the ways in which the financial services sector has changed post-Covid and how FCA must adapt to...
FCA takes criminal action for unauthorised mortgage activities
FCA has started criminal proceedings against 2 individuals for unauthorised activities relating to mortgages. Larry Bareto traded as an unauthorised firm and Tassib Hussain is an accountant. Over a 3 year period Mr...
PRA issues Mortgage Guarantee Scheme statement
PRA has issued a statement on the prudential treatment of residential mortgage loans made under the government’s new Mortgage Guarantee Scheme (MGS). Under the MGS the government guarantees a portion of the first...
European Commission performs ‘mini-sweep’ on consumer credit
The European Commission has published details of a ‘mini-sweep’ on websites advertising and selling consumer credit products in 13 EU member states and 2 EEA countries. The Commission’s main objective...
Lender’s duties limited in asset disposal
In a helpful decision for Banks and lenders, the Court of Appeal decision in Morley (trading as Morley Estates) v Royal Bank of Scotland plc [2021] EWCA Civ 338 confirmed the limited extent of the duties a lender owes...
Scott NodderFinancial Services Bill continues in Lords
The House of Lords has continued its scrutiny of the Financial Services Bill during the report stage. The proposals debated on 14 April include amendments to: remove the prohibition under the Market Abuse Regulation on...
FCA issues reminder to consumer credit firms about post-Brexit disclosure changes
FCA has issued a statement and published an updated webpage to remind firms subject to regulations 8, 10 and 11 of the Disclosure Regulations 2010 and the corresponding rules in the FCA Handbook of the changes they will...
FS Bill: Further amendments tabled for debate in Lords
Parliament has published a marshalled list of the latest amendments to the Financial Services Bill to be debated in the House of Lords. The proposed amendments include: a requirement for the FCA and PRA to give...
FS Bill continues in Lords
The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.
FCA publishes fin prom data
FCA has published data showing the number of financial promotions that have been amended or withdrawn in the first quarter of 2021. The figures do not include any actions FCA took as a result of unapproved promotions...
FCA finalises cancellations and refunds guidance extension
FCA has published its finalised guidance extending its temporary guidance on how it expects firms to act when customers are making claims for cancelled events or travel arrangements. The guidance takes effect from 2...
FCA concerned on Amigo scheme of arrangement
FCA has taken the relatively unusual step of publishing a letter of concerns it lodged in relation to Amigo Loans’ application to implement a Scheme of Arrangement. FCA does not support the scheme for a number of...
FOS publishes 2021/22 plans and budget
FOS has published its plans and budget for 2021/22 which were consulted on between December 2019 and January 2020. FOS has forecast a reduced caseload in 2021/22 following the unprecedented increase during 2020...
FCA tells CMCs and High Cost Lenders to work together on complaints
FCA has received several communications from high cost lenders and CMCs who are not happy with how each other has dealt with complaints brought by consumers against high cost lenders using CMCs. Amongst the...
PRA issues policy statement entitled “Depositor protection: Identity verification”
The PRA has issued a policy statement entitled “Depositor protection: Identity verification” which provides feedback to consultation paper (CP) 3/21 on the same subject. The final policy set out in the...
CMA publishes annual plan for 2021/2022
Following consultation, the CMA has now published its annual plan for 2021-2022. The CMA has identified four key themes on which it intends to concentrate: protecting consumers and driving recovery during and after the...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
Covid-19: FCA updates on support for mortgage customers
The FCA is consulting on proposed updates to its “Mortgages and Coronavirus: Tailored Support Guidance.” The guidance is intended to ensure that mortgage customers whose homes may be repossessed are treated...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FCA increases contactless payment thresholds
FCA has published a policy statement outlining the amendments to Article 11 of the strong customer authentication RTS. The changes increase the single transaction threshold for contactless payments from £45 to £100 and...
FCA publishes funeral plan consultation paper
The FCA has published a consultation paper on its proposed approach to the regulation of pre-paid funeral plans. Such plans are due to become fully subject to FCA regulation from 29 July 2022. The majority of the...
FCA finalises Breathing Space rule changes
FCA has published its final changes to CONC to clarify how its rules apply where the Breathing Space Regulations also apply. Its aim is to avoid any unnecessary duplication of requirements. The Regulations allow ...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
FCA updates on cancellations and refunds guidance
FCA has updated its webpages and finalised guidance on how it expects credit and debit card and insurance providers to deal with requests for refunds following cancellation of trips, events and holidays as a result of...
National Courts can order parties to re-negotiate unfair terms, says the CJEU
In Banca B. SA v A.A.A (Case C 269/19) ECLI:EU:C:2020:954 the First Chamber of the Court of Justice of the European Union (CJEU) has held that National Courts can facilitate negotiations to replace an unfair term where...
The Unfair Contract Terms Directive is challenged but holds firm
In the case of Dexia Nederland BV v XXX and Z , the Court of Justice of the European Union (CJEU) gave judgment in two cases relating to the provisions of The Unfair Contract Terms Directive (93/13/EEC). The directive...
Treasury confirms BNPL regulation “as soon as time allows”
Heralding the publication of the Woolard Review, Treasury published its exchange of letters with Chris Woolard confirming the Economic Secretary’s agreement with the recommendation to regulated interest-free BNPL...
FCA publishes unsecured credit market report
The FCA published the Woolard Review on the unsecured consumer credit market today. The report sets out 26 recommendations on how to make the market better in the future including: bringing BNPL into regulation more...
Jonny WilliamsFCA publish latest coronavirus updates
The FCA has today published an update on mortgages, consumer credit, banking and payments during coronavirus. The main points can be summarised as follows: repossessions under mortgages cannot be undertaken without...
FCA publishes BBLS PAYG guidance
FCA has published its finalised guidance for firms that provide Pay as You Grow options under the BBLS. The guidance: notes that CONC 7 generally applies to set out the rules for fair treatment of customers in arrears...
FCA writes to Debt Purchasers, Collectors and Administrators
The FCA has written to Debt Purchasers, Debt Collectors and Debt Administrators outlining: its view of the key risks debt purchase, debt collection and debt administration firms pose to their customers or the markets in...
Angie BamboulisFCA consults on mortgage and consumer credit Covid guidance update
FCA is consulting, until 10:00am on 18 January, on updating its guidance for mortgage and consumer credit borrowers in financial difficulties as a result of Covid. Key proposals are: an extension on the ban on...
FCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
Insolvency Service Guidance: Breathing Space
The Insolvency Service has published its guidance on the Debt Respite Scheme (Breathing Space). The guidance is intended to support creditors in understanding the Breathing Space Regulations and sets out information on:...
FCA updates on complaints data
FCA has published its latest firm-specific and aggregate complaints data from firms for H1 2020. It specifically notes: the lowest levels of recorded complaints since H2 2016 – firms received 2.96m; the largest...
FCA fines over treatment of customers in arrears
FCA has fined 3 entities in the Barclays group £26m for breaches of Principles 3 and 6 relating to failures in relation to their treatment of consumer credit customers who fell into arrears or were otherwise in...
BoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
Up next from FCA
FCA’s latest policy development update highlights as due before the end of the year consultation on changes to accommodate the Breathing Space Regulations.
Most other consultations are due in the New Year
FCA pleased with RTO price cap
FCA has published an evaluation, which it says shows its rent-to-own price cap, which took effect in April 2019 has been effective in reducing the prices RTO firms charge. It says the prices of the two largest firms in...
Mainstream Consumer Credit Lenders portfolio letter published
The FCA has today published the letter it sent to the Board of Directors of mainstream Consumer Credit Lenders. The letter sets out the FCA’s: views of the risks these lenders pose to their consumers or the...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
Ombudsman News looks at trends and stats
The latest edition of Ombudsman News looks at its recently published complaints data (previously featured in detail in FIN), which saw a rise in complaints from people who borrowed money and then felt the debt was...
FCA: Covid support for consumer credit
The FCA yesterday published it’s next stage of enhanced support that firms must offer consumer credit customers facing payment difficulties as a result of the COVID-19 pandemic (FS20/18). If you’d like to...
FOS approach to CCA complaints
The FOS has published a website setting out its general approach to complaints about consumer credit products. The website sets out details of the types of complaints the FOS will consider, their approach to reviewing...
Final Breathing Space Regulations published
HM Treasury has today published the final version of the The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. Get in touch if you’d like...
Covid-19 support update: mortgages
The FCA yesterday announced updated guidance for mortgage customer facing financial difficulties as a result of Covid-19. Under the extension, eligible customers will have until 31 March 2021 to apply for an initial...
FCA writes supervision letter to PCWs
FCA has written a portfolio supervision letter to CEOs of price comparison websites. The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...
Default notices amendment regulations published
HM Treasury has published the Consumer Credit (Enforcement, Default and Termination Notices (Coronavirus) (Amendment) Regulations 2020 which come into force on 2nd December 2020 and firms must have implemented the...
Latest Denizbank ruling on interpretation of PSD2
The First Chamber of the Court of Justice of the EU (CJEU) has made a preliminary ruling in the case of Denizbank AG v Verein fur Konsumenteninformation (Case C-287/19) [ECLI:EU:C:2020:897]. It has clarified the...
Distance marketing of consumer financial services
The EC published a Commission Staff Working Document Evaluation of Directive 2002/65/EC concerning the distance marketing of consumer financial services. The evaluation can be summarised at a high level as follows: The...
FOS publishes Q2 information
FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...
Up next from FCA
Before the end of the year, FCA expects to publish:
consultation on amendments to take account of Breathing Space Regulations;
consultation on fees policy; and
feedback on the debt advice levy rate.
FCA updates on EEA regulator Brexit guidance
FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions. Some of the pages...
EC report on CCD
The European Commission published a report yesterday to the European Parliament and Council of the EU on the implementation of CCD. The key outcomes of the evaluation fall into the following headings: Effectiveness...
FCA speech: the credit market and the pandemic
Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations at the FCA, has delivered a speech on the FCA’s priorities for the credit market. Stressing that consumer credit remains one of his...
Covid-19 measures weekly summary
It’s been a while since we needed to do a digest of these. In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...
EBA urges consumers first in POG supervision
EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...
Further Consumer Credit Covid-19 measures announced
The FCA today published a number of updated guidance documents for consumer credit firms who have customers still facing financial difficulties due to COVID-19. The publications sets out details of the enhanced support...
Enhanced Covid support for mortgage customers published
Today, the FCA published draft guidance extending the payment deferral support for mortgage customers up to 31 January 2021. The FCA are expecting comments from stakeholders by 5 November 2020 by emailing...
FCA publish Call for Input: Unsecured Credit Market
This morning, the FCA has published a Call for Input: Review into change and innovation in the unsecured credit market (The Woolard Review). The call for input revolves around, and asks questions specific to, the...
FCA to propose mortgage and consumer credit support update
FCA reacted to the announcement of the further measures to contain Covid-19 by saying it will review its measures to support mortgage borrowers impacted by the pandemic. Although FCA stresses borrowers should always try...
FCA confirms updated guidance for insurance and premium finance
FCA has confirmed its finalised guidance for insurance and premium finance firms, that applies from 31 October. The guidance contains minor changes from the consultation version, and supersedes the August guidance...
FCA writes portfolio letter to mortgage intermediaries
FCA has published its portfolio supervision letter to mortgage intermediaries. It notes that mortgage intermediaries range from sole advisers to large networks, and that most focus on mainstream mortgages but some...
FCA extends deadline for lenders to offer switching options for mortgage prisoners
In its latest update, the FCA acknowledged that Covid-19 has meant that lenders have not been able to offer switching options for mortgage prisoners as quickly as anticipated. FCA rules require administrators and...
FCA introduces measures to support mortgage borrowers
The FCA has adopted new measures to support closed book and interest-only/ part-and-part mortgage borrowers, some of whom may be mortgage prisoners. The measures are: a new rule that will make it easier for lenders to...
FCA confirms new rules
FCA has issued a Handbook Notice summarising rule changes finalised over recent months. Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...
Breathing Space Consultation Launched
The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales)...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
FSB issues final report on CIRR toolkit
The Financial Stability Board (FSB) has published its final report on a toolkit of effective practices for financial institutions’ cyber incident response and recovery (CIRR). The toolkit aims to assist financial...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...
Speech: FCA Regulation of Consumer Credit
Nisha Arora, Director of Consumer and Retail Policy at the FCA gave a speech today at the online Finance and Leasing Association Conference. The speech reminded the audience about the 4 outcomes the FCA wants to see for...
Mortgage Market Disruptions
The FCA today published Occasional Paper No. 57 on mortgage market disruptions. The paper uses data to document the trends associated with COVID-19 and compares them to the financial crisis of 2007-09. The summary...
HMT writes to House of Lords on equivalence
The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...
FCA sets mortgage consumer outcome expectations
Jonathan Davidson, speaking at FCA’s webinar on mortgage forbearance, discussed what FCA is seeing the mortgage markets and reiterated its expectations on firms. His key takeaways were: FCA sees an increasing...
New Debt Letter Rules
HM Treasury has announced this morning that the current form of debt letters, including default notices will be changed from December 2020. The changes are expected to include making the notices more user friendly, with...
FCA skilled persons reports update
In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side. 3 related to retail banking and payments and 2 to retail lending...
Up next from FCA
FCA’s latest Policy Development Update promises, by the end of the calendar year: consultation on amendments to CONC and MCOB to accommodate the Breathing Space Regulations consultation on the new regulatory...
Finalised Guidance: Cancellations and refunds
Following our report on the draft guidance published on 31 July, the FCA has published its finalised guidance on its expectations for insurance and card providers helping consumers claim money back. The guidance which...
PRA consults on IRB approach to UK mortgage risk weights
PRA is consulting on rule changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. A by-product of the proposals would also narrow the differentials between IRB and...
Consumer Credit and Coronavirus: Final FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance, which covers credit cards, loans, rent to own...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
Chair announced for Unsecured Credit Market review
The FCA has today announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market. The Review, set to be published by early 2021, will look at regulation’s role in better...
Consumer Credit and Coronavirus (Additional Guidance for Firms)
The FCA has published the additional guidance for consumer credit firms on the next stage of help for consumers. The guidance covers credit cards, loans, rent to own, BNPL, pawnbroking, motor finance and HCST. The FCA...
PSR publishes interim report on card acquiring services
PSR has published its interim report with provisional findings on the supply of card-acquiring services. It says merchants should shop around to get a better deal from their provider or switch to a new one, but that...
FCA confirms new mortgages guidance
FCA has finalised its additional guidance to firms in the mortgage markets, setting out how they should provide tailored support to borrowers who have had payment deferrals but continue to struggle, and to those whose...
Up next from FCA
The latest Policy Development Update notes a reinvigoration of FCA in publishing consultation and discussion papers before the end of the calendar year. It plans: consultation on amendments to accommodate the Breathing...
You must be logged in to post a comment.