Credit, Collections & Insolvency News
The Government has announced a major reform of the Consumer Credit Act, with this marking an effort to modernise the framework for credit firms. Ministers are looking to give more power to the Financial Conduct Authority (FCA) as part of the changes, which the Government said would enable the regulator to quickly respond to developments…
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The Financial Conduct Authority (FCA) is planning tougher curbs on bank branch closures, saying Banks and Building Societies will have to provide greater justification for closing a branch or cutting opening hours. The FCA is also consulting on requirements for more detailed analysis on how firms assess the impact on customers when they plan to…
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Guarantor loan provider, TFS Loans (in administration) has been fined £811,900 by the Financial Conduct Authority (FCA) in relation to deficient affordability checks on 3,150 guarantors in its consumer credit business. The FCA has also imposed a requirement on TFS to redress the guarantors that were harmed by the firm not conducting appropriate checks. TFS…
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Richard Lloyd OBE has become Interim Chair of the Financial Conduct Authority, as previously announced on 4th February 2022. Lloyd takes over from Charles Randell CBE, who stood down yesterday after four years as Chair. Randell took up his role as Chair of the FCA and Payment Systems Regulator’s (PSR) Boards in April 2018. The…
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The Financial Conduct Authority (FCA) has appointed Helen Charlton as the Chair of the Financial Services Consumer Panel, and Andy Mielczarek as the Chair of the FCA Smaller Business Practitioner Panel, succeeding Wanda Goldwag and Marlene Shiels respectively. The Consumer and Smaller Business Practitioner Panels are independent, statutory panels representing the interests of consumers and…
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The Payment Systems Regulator (PSR) has announced its plans that will see around 400 more financial firms provide Confirmation of Payee (CoP). This essential fraud protection service will increase coverage from 92% of transactions made via Faster Payments (FPS) and CHAPS (when you make a payment transfer from one account to another) to 99% worth…
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Amigo Loans has been granted court approval to pay compensation to past customers’ mis-sold loans and a chance to stay in business and resume lending. The High Court approved a new scheme that will see the sub-prime lender pay a higher proportion of the value of claims to customers than previously proposed. Commenting on the…
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Millions of people in communities across the UK will see their ability to access cash protected by new powers set out by the Government. Under the new rules, the financial regulator – the Financial Conduct Authority (FCA) – will be granted new powers over the UK’s largest banks and building societies, to ensure that cash…
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The Financial Conduct Authority (FCA) is set to introduce new powers to more swiftly cancel or change what regulated activities firms are permitted to do. The new power is available following a change in the law allowing the FCA to streamline and shorten the removals process. The FCA will provide a firm with two warnings if it believes it is not using…
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New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 19% in March 2022 compared with the same month in 2021. In Q1 2022 overall, new business was 34% higher than in the same quarter in 2021. The credit card and personal loan sectors together reported…
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The Financial Policy Committee (FPC) has announced a proposal to withdraw its mortgage affordability recommendation. The current requirement requires mortgage lenders to assess affordability by applying an interest rate stress test to determine whether borrowers could still afford their mortgage payments if their mortgage rate were to increase by three per cent. In a statement,…
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The Payment Systems Regulator (PSR) has taken action against National Westminster Bank Plc, Royal Bank of Scotland Plc, Ulster Bank Ltd and Coutts & Company for overcharging interchange fees on credit cards. The regulator’s action has made sure that those who were overcharged by the banks got their money back. The PSR has also fined…
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The Financial Conduct Authority (FCA) is warning lenders and brokers to stop using misleading terms in their advertising or face regulatory action. The FCA says that the increased cost of living means that more people may take out loans. Marketing that does not give clear information and warnings about the potential consequences of borrowing puts…
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