Credit, Collections & Insolvency News
The Financial Conduct Authority (FCA) has fined Volkswagen’s UK financial services arm £5.4m for its unfair treatment of customers in financial difficulty. The City watchdog found that between January 2017 and July 2023. The investigation, Volkswagen Finance took cars away from vulnerable customers without considering other options. The firm failed to understand customers’ individual circumstances…
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The Financial Conduct Authority (FCA) has launched a review of financial services rules as it looks to strip back red tape. The City watchdog said the burden of regulation ‘could be streamlined’ and has called on the industry to identify rules which could be scrapped or simplified as they ‘overlap’ with consumer duty. The…
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The Financial Conduct Authority (FCA) has confirmed that several firms have been permitted to recommence their sales of Guaranteed Asset Protection (GAP) insurance, following action by the regulator to improve fair value. To restart sales, firms need to demonstrate that their GAP products provide fair value to customers, in line with FCA rules. …
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Data released from Step Change shows one on four (24%) adults have relied on credit to pay for essentials such as food and household bills as in the cost of living crisis. RSM UK is reminding banks and other credit agencies of their responsibilities as lenders, in line with Consumer Duty rules. FCA guidance for credit providers…
Read moreIn its Business Plan for 2024-25, the Financial Conduct Authority (FCA) has set out an ambitious programme of work for the final year of its 3-year strategy to achieve better outcomes for consumers and markets. The FCA says it will continue to deliver the 13 commitments in its strategy, which focuses on preventing serious harm,…
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The Financial Conduct Authority (FCA) and Prudential Regulation Authority have set out proposals to boost diversity and inclusion across the financial services industry. The rules would require large banks and insurers to report diversity and inclusion data to regulators and set new targets to address under-representation. In a consultation paper, the bodies say firms would…
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The Financial Conduct Authority (FCA) has saiD it has blocked nearly 30% more companies from operating over the past 12 months than in the previous year. The regulator said it had cancelled the authorisation of 627 firms in the year to the end of March. The FCA said the proportion of firms it did not…
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Temporary measures forcing lenders to offer greater support to borrowers in financial difficulties could become permanent, under new proposals announced by the Financial Conduct Authority (FCA). The FCA also announced that 17 lenders will pay up to £47 million in redress to financially-distressed borrowers, after failing to offer appropriate support. The payments will be made…
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A series of measures designed to reduce the risk of money laundering via the Post Office have been set out by the Financial Conduct Authority (FCA). The regulator brought together partners including the National Economic Crime Centre (NECC), industry and government to strengthen controls while seeking to ensure that legitimate customers can continue to use…
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The Financial Conduct Authority (FCA) has published its business plan setting out its top priorities for the year ahead. The plan includes the introduction of consumer duty and reforming the UK’s listing regime. The FCA says that the programme aims to achieve better outcomes for consumers and markets, in line with its three-year strategy. Last…
Read moreThe Financial Conduct Authority (FCA) has confirmed final mortgage guidance, setting out the ways mortgage lenders can help customers worried about or already struggling with their mortgage payments because of the rising cost of living. The regulator has also published new data and analysis on the mortgage market. This shows that, in addition to the…
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The Financial Conduct Authority (FCA) has publicly censured Amigo Loans for failing to conduct adequate affordability checks on borrowers and guarantors. The FCA says it would have imposed a fine of £72.9 million however Amigo demonstrated that this would cause it serious financial hardship. A fine would also have threatened Amigo’s ability to meet its…
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As firms continue to get ready for the implementation of the Consumer Duty, the Financial Conduct Authority (FCA) has announced that is offering support to firms through the transition with a programme of engagement, which includes setting out in letters the expectations of the Duty and arranging a series of regional in-person events for specific groups of…
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