Credit, Collections & Insolvency News
Nearly 600,000 people are now paying less in interest and charges on their credit card debt because of changes made by the Financial Conduct Authority (FCA) according to its Annual Report.
In the report the reulator has set out how it has worked over the past 12 months to meet its objectives of protecting consumers, enhancing market integrity and promoting competition.
The FCA also changed insurance rules to stop firms overcharging loyal customers. Millions of customers are now being offered better deals, with the average cost of renewing motor insurance down £55. The FCA also carried out its first ever criminal prosecution under anti-money laundering legislation and worked on an updated listing regime to ensure that the UK remains a trusted and attractive place to list companies.
The FCA has also highlighted areas which fall outside the scope of its regulation but may present risks to consumers. These include exclusions in the financial promotions’ regime, general insurance products and third-party firms who provide services like IT to regulated firms. The FCA’s remit is set by Parliament and the Perimeter Report supports regular dialogue with the Government on the FCA’s regime.
Richard Lloyd, Interim Chair of the FCA, said “I am proud of the way that the FCA ensured that financial services could provide strong support for people affected by the Covid-19 pandemic and maintained well-functioning markets following Russia’s invasion of Ukraine.”
“The next year will see major changes like the new Consumer Duty and regulation of funeral plan providers. I am confident that the FCA will continue to deliver for the consumers and markets that we represent.”
Nikhil Rathi, Chief Executive of the FCA said “We continue to transform as an organisation, ensuring that our colleagues have the information they need and are empowered to take the tough decisions on which effective regulation relies. We are learning the lessons from the past to ensure that we can deliver regulation fit for the world in which we operate.”
Commenting on the FCA Annual Report, David Hendry, Chief Marketing Officer at Freedom Finance, one of the UK’s leading digital lending marketplaces, said “It is great news that the actions of the regulator are supporting consumers in the cost-of-living crisis by helping them lower the interest and charges that they pay on credit card debt.”
“Successful interventions like this from the FCA are all the more important as the cost-of-borrowing rises and starts to squeeze household budgets. Our recent analysis of the latest Bank of England data found that average credit card rates jumped to 21.43% in June 2022 and are now approaching levels not seen since 1998 which was the last time that average rates surpassed 21.50%.”
“Shopping for credit cards can be confusing with the vast array of products and different features that are out there in the market. So it is vital that consumers shop around using digital marketplaces to get the best deals that they are eligible for and that are suitable for their circumstances as well as making the most of other sources of guidance like government-backed benefits checkers to see if they are missing out on possible State support.”
