Credit, Collections & Insolvency News
HM Treasury has announced that they have started the search for the next Chair of the Financial Conduct Authority (FCA). While the search for Charles Randell’s permanent successor concludes, Richard Lloyd OBE will act as Interim Chair of the FCA from 1st June 2022. Aidene Walsh will act as interim chair of the Payments Systems…
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New equity release customers will be able to mitigate the costs of borrowing in later life through a new product safeguard announced by the Equity Release Council (the Council), the representative industry body. From 28th March 2022, all customers taking out lifetime mortgages that meet Council standards will be guaranteed the right to make penalty…
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The Payment Systems Regulator (PSR) has announced that it has imposed fines against Mastercard, allpay, Advanced Payment Solutions (APS), Prepaid Financial Services (PFS) and Sulion after concluding that the five parties infringed competition law by agreeing not to compete or poach each other’s customers in the prepaid cards market in the UK. The pre-paid cards…
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The PSR has published its latest access and governance report, showing trends and developments in interbank payment systems over 2019 and 2020. The report details how new participants have been able to join payment systems (access) and notes developments in how the payment systems have been run and operated (governance). This shows that interbank payment…
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Consumers using Buy Now, Pay Later (BNPL) are much more likely to be struggling according to latest research by debt charity StepChange. In response to the HM Treasury’s consultation on how to regulate BNPL StepChange is pointing to clear evidence that BNPL products are being widely used by people experiencing financial difficulty. For example, consumers…
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Which? is calling for stronger safeguards to stop online shoppers from choosing Buy Now Pay Later (BNPL) to pay for products without knowing the risks, as new research from the consumer champion reveals many people do not think that they are taking on debt when using this payment method. Buy Now Pay Later has soared…
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Metro Bank has been fined £5,376,000 for accounting errors that forced the bank to raise £375 million from its shareholders to shore up its balance sheet. In January 2019 Metro disclosed errors in its accounting treatment of professional buy-to-let loans and loans secured by commercial mortgages. The mistakes went back to May 2016 and meant…
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The total value of fines handed out by the Financial Conduct Authority (FCA) has increased nearly four-fold, hitting £577 million in 2020/21 according to analysis by RPC. The figures are up from £156m last year and £423m in 2018/19. RPC says that when regulated businesses commit serious failings, the FCA is prepared to levy severe…
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The Financial Ombudsman Service’s (FOS) expected cost base for 2022/23 will be £293.8million, an increase of 18% on the £249.4m levied for the current year. The FOS said it expects to fund this through a levy increase of £10 million to £106 million, as well as cuts to its cost base. A consultation on its…
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The Financial Conduct Authority (FCA) has fined HSBC Bank £63,946,800 for failings in its anti-money laundering (AML) processes. HSBC used automated processes to monitor hundreds of millions of transactions a month to identify possible financial crime. However, the FCA found that three key parts of HSBC’s transaction monitoring systems showed serious weaknesses over a period…
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A parliamentary committee has published a report on the draft Online Safety Bill calling for dangerous online paid-for adverts, such as those promoting scams, to be included within the Bill. A coalition of consumer groups, charities, policing leads and financial services industry bodies, including Which?, UK Finance, Martin Lewis and MoneySavingExpert, the Personal Investment Management…
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A new report by The Bank of England (BoE) says that Britain’s financial system is healthy enough to withstand a deep recession. The report found that major UK banks are strong enough to keep supporting households and businesses, even in severe scenarios. The Bank’s annual stress test found that the country’s eight biggest lenders would…
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NatWest has been fined £264,772,619.95 following convictions for three offences of failing to comply with money laundering regulations. It was found that the bank failed to properly monitor the activities of jeweller Fowler Oldfield between November 2012 and June 2016. The Bradford-based jeweller deposited £365 million with the bank over a five-year period, including £264 million…
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