Category: Enforcement

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FCA publishes webpage setting out terms of reference for review into change and innovation in the unsecured credit market

On 26 October 2020, the UK Financial Conduct Authority updated its webpage on its review into change and innovation in the unsecured credit market. This review will be led by Christopher Woolard.

The review will look at:

– how regulation can better support a healthy unsecured lending market; and

– the impact of COVID-19 on employment security and credit scores, changes in business models and new developments in the unsecured lending (including the growth in point of sale unregulated products).

The webpage sets out the review’s terms of reference. These are:

– To examine the current state of the unsecured credit market in the UK including the component parts, recent changes in size and scale, whether in regulated or in adjacent unregulated products.

– To examine changes in regulation, noting those areas that have been subject to regulatory oversight in recent years from a variety of bodies including the FCA (for example overdrafts or high cost credit), and comparing likely harms or dynamic effects seen in those areas.

– To examine the immediate effect of coronavirus on demand for unsecured credit and on the role of credit information.

– To report on possible trends and potential future pressures.

– To identify areas of growth in demand from consumers for credit including from non-traditional providers of credit.

– To present an assessment of the benefits and harms evident in the market and those that may be expected as the market develops.

– To compare international approaches to these issues where relevant.

– To make conclusions and recommendations to the FCA Board on management of harms in this sector; gaps in understanding or data; potential changes in regulation for the FCA to consider; advice on potential changes to the overall system the FCA may wish to consider with other authorities or the Government; and possible innovations to support a sustainable market.

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FCA publishes policy statement banning motor finance discretionary commission models and making minor changes to commission disclosure rules

Earlier today, on 28 July 2020, the FCA published a policy statement, PS20/8, banning motor finance discretionary commission models and making minor changes to commission disclosure rules. The FCA also published a press release.

My one page summary is (and you can see a bigger version if you click on it):

If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.

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FCA publishes updated temporary guidance to motor finance and high cost credit firms dealing with customers needing COVID-19 related payment deferrals

Earlier today, on 15 July 2020, the UK Financial Conduct Authority published updated temporary guidance to motor finance and high-cost credit firms dealing with customers needing COVID-19 related payment deferrals.

There’s updated guidance for motor finance, for high-cost short-term credit and for rent-to-own, buy-now pay-later and pawnbroking agreements. There’s also a short feedback statement.

My one page summary is (and you can see a bigger version if you click on it):

If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.

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FCA consults on draft updated temporary guidance to motor finance and high cost credit firms dealing with customers needing COVID-19 related payment deferrals

Earlier today, on 3 July 2020, the UK Financial Conduct Authority issued a consultation on draft updated temporary guidance to motor finance and high-cost credit firms dealing with customers needing COVID-19 related payment deferrals.

There’s draft guidance for motor finance, for high-cost short-term credit and for rent-to-own, buy-now pay-later and pawnbroking agreements. There’s also a draft handbook instrument.

My one page summary is (and you can see a bigger version if you click on it):

If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.

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Success for the CMA’s COVID-19 Taskforce

Following on from the Competition and Market Authority’s (CMA) statement in May 2020, holiday accommodation provider, Vacation Rentals, has voluntarily changed its policy after originally failing to offer refunds to all customers whose trips were cancelled.

Vacation Rentals (who operates sites including Hoseasons and Cottages.com) is just one holiday accommodation provider which was reported to the CMA’s COVID-19 Taskforce. Vacation Rentals has now given the CMA a formal commitment that customers will have the option of a full refund if a booking has been cancelled because of restrictions associated with the coronavirus outbreak.

The CMA says some other providers have not yet agreed to follow the approach of Vacation Rental and the CMA continues to investigate.

Read the full update here.

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FCA publishes final report on the payment protection insurance complaints deadline

On 24 April 2020, the UK Financial Conduct Authority published its final report on the payment protection insurance (PPI) complaints deadline.

The report:

– says the FCA’s PPI campaign has been a success;

– states firms have paid over £38bn of redress to customers; and

– brings an end to the FCA’s project work on PPI (but it will continue to monitor how firms are dealing with complaints submitted before the 29 August 2019 deadline). 

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FCA publishes new webpage setting out its expectations for wet-ink signatures in light of coronavirus (Covid-19) restrictions

On 20 April 2020, the UK Financial Conduct Authority published a new webpage setting out its expectations for wet-ink signatures in light of COVID-19 restrictions. The FCA makes it clear its rules do not require wet-ink signatures on agreements. However, firms need to make sure electronic signatures comply with the general law (see our earlier post on the Law Commission’s report on electronic signatures). The FCA reminds firms to consider the Principles for Businesses when using electronic signatures.

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FCA issues final notice to claims management company seeking authorisation

On 29 January 2020, the UK Financial Conduct Authority published a final notice given to FS Claims Limited (a firm applying for authorisation for claims management activity).

The FCA decided the application was incomplete and, given the failings to provide further information it had asked for, the FCA did not consider the applicant could meet the threshold conditions in the Financial Services and Markets Act 2000.

This is a clear indicator from the FCA that the application process for claims management companies will not be easy.