Car Insurers hit with nearly 40% charge for paying monthly

17th April 2024 Consumer Lending | #featured

Car owners are being hit with eye-watering annual percentage rates (APR) of nearly 40 per cent when paying for their insurance monthly, a new Which? investigation has found. The study found some home insurers charging up to almost 35 per cent APR on monthly payments. The consumer champion is now calling on the Financial Conduct…

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UK Finance announces new RLN experimentation phase

16th April 2024 Consumer Lending |

UK Finance has today announced work on a new UK Regulated Liability Network (RLN) experimentation phase with eleven of its members. The UK RLN is envisaged as a common ‘platform for innovation’ across multiple forms of money, including existing commercial bank deposits and a shared ledger for tokenised commercial bank deposits.  Through a collaboration of…

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FCA warns motor finance firms to hold financial resources for probe

The Financial Conduct Authority (FCA) has issued a letter to motor finance firms reminding them to maintain adequate financial resources as a probe into the market continues. The FCA is currently reviewing the historical use of motor finance discretionary commission arrangements (DCA). The regulator says that it has observed firms taking different approaches to account…

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PSR publishes annual plan

10th April 2024 Consumer Lending | #payments

The Payment Systems Regulator (PSR) has published its Annual Plan, setting out its key aims, activities and costs for 2024/25.   The annual [lan highlights that this year, the third of its five-year Strategy, will be an important one for consolidating the delivery of the PSR’s valuable work to improve payments for people and businesses across…

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FCA warns firms to keep their social media ads lawful

27th March 2024 Consumer Lending | #FCA regulation

The Financial Conduct Authority (FCA)  has issued guidance for memes, reels and gaming streams promoting financial services. The FCA has set out how adverts across social media channels must be fair, clear and not misleading, meaning they must have balance and carry the right risk warnings so people can make well informed financial decisions.  …

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Lending Technology Think Tank 4.1 Review

Credit Connect’s hosted its sixth Online Lending Technology Think Tank last week which saw lending strategies and the future of the sector discussed by eight leading professionals from a variety of lending sectors. The event was attended by over a hundred lending professionals from banks, credit card providers building societies, loan providers, credit unions and…

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Interest rates hold at 5.25% for fifth consecutive month – industry reaction

22nd March 2024 Consumer Lending | #interest rates

The Bank of England’s rate-setting body the Monetary Policy Committee (MPC) announced it has decided to keep interest rates on hold at 5.25% for the fifth time in a row. The MPC voted by a majority of 8–1 to maintain Bank Rate at 5.25%. One member preferred to reduce Bank Rate by 0.25 percentage points,…

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Over a third of women put off applying for credit after being turned down

8th March 2024 Consumer Lending | #credit

Women who have been rejected for a credit or loan application are significantly more likely than men to assume that “no means never” and struggle on without financial support, according to research by Fair4All Finance, the not-for-profit financial inclusion organisation. Polling of 3,101 adults across the UK showed more than one in three women (36%)…

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Credit card complaints hit all time high

Latest data from the Financial Ombudsman Service (FOS) has found that credit card complaints reached a record high in Quarter 4 2023, with consumers lodging 5,660 complaints. 3,086 of credit card complaints were due to unaffordable or irresponsible lending. The figures marks the highest level of complaints in a three-month period since 2014/15. Other products…

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Regulated firms at risk of financial crime without due diligence

29th February 2024 Consumer Lending | #compliance risk

New data reveals that more than nine out of 10 (92%) regulated firms do not carry out daily monitoring on clients. This exposes them to potential sanctions breaches and other financial crime such as money laundering, warn digital compliance experts at SmartSearch. Under UK law, regulated firms must identify and verify anyone they work with, to…

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Home insurance premiums rise by 32% year-on-year

16th February 2024 Consumer Lending | #home insurance

Home insurance premiums increased by nearly a third (32%) in the final three months of 2023 compared to the same period in 2022, according to new research from Compare the Market. The average home insurance premiums in the UK jumped by £47 from £146 in the fourth quarter of 2022 to £193 in 2023. All…

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FCA stops thousands of misleading ads and promotions 

Over 10,000 financial adverts and other promotions were withdrawn or changed in 2023 following intervention from the Financial Conduct Authority (FCA), an increase of 17%, year-on-year. The FCA also published 2,285 alerts to help prevent consumers from losing their money to scams, up from 1800 in 2022. After being given new powers by the Government,…

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Unfair commission claims increasing pressure on motor finance providers

9th February 2024 Consumer Lending | #motor finance

As the Money Saving Expert encourages consumers to claim for potentially unfair motor vehicle credit arrangements, RSM UK is warning that credit providers could face increased operational pressures. In January, the Financial Conduct Authority (FCA) announced it was undertaking a review of historic car finance arrangements, and would take regulatory action if widespread misconduct means…

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