The FCA says the new proposals “align the funding of debt advice more closely with the actual lending firms do, but it will mean some firms will pay a larger levy than they do now”.
Credit, Collections & Insolvency News
The Financial Conduct Authority (FCA) is planning to increase the amount mortgage finance providers pay towards the Money Advice Service debt advice levy. Mortgage finance providers currently pay £21 million ( 44%) of the levy this year. Under FCA proposal this will increase to £24 million or 50%.
A new fee block will also be created for consumer credit lending, so that firms undertaking unsecured lending will pay the other 50%. This is currently covered by the ‘deposit takers’ fee block which excludes credit card companies who are paying a relatively small proportion of the levy despite representing a large proportion of total unsecured lending.
