Credit, collections & insolvency news
The Financial Conduct Authority (FCA) has announced the launch of a fee cap for claims management companies (CMCs). The change will mean new restrictions will apply to claims management companies to prevent them from charging excessive fees to consumers owed compensation from financial services firms. Under new Financial Conduct Authority rules in force from today,…
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Monzo has been reprimanded by the Competition and Markets Authority (CMA) for failing to specify the monthly charge in the correct document when users agreed to overdrafts. The CMA claimed that a breach between October 2018 and November 2021 meant that the app’s customers were not aware of the potential monthly fees, on exceeded agreed…
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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 Conduct Authority (FCA) said there should be no increase in the amount of money that customers can get back if their bank, building society or other investment company collapses. It said the £85,000 limit is enough to cover most cases. However, it suggested the level be reviewed every three years to ensure it…
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New plans from the Financial Conduct Authority (FCA) will aim to ensure a higher and more consistent standard of consumer protection for users of financial services and help to stop harm before it happens. The FCA is concerned that currently, financial services do not always work well for consumers. The new plans will fundamentally shift…
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The Financial Conduct Authority has proposed stronger requirements on oversight of appointed representatives. The consultation is aimed at improving the appointed representatives regime measures and tackling harm from this model. An appointed representative (AR) is a firm or person who carries on a regulated activity on behalf, and under the responsibility of, a firm authorised…
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The Financial Conduct Authority (FCA) has reformed its decision-making process to ensure it can make faster and more effective decisions for consumers, markets and firms. As part of its transformation to a more innovative and assertive regulator, more decisions will be taken by the FCA’s senior managers rather than by the Regulatory Decisions Committee (RDC). The…
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FCA approved, debt management firm, MoneyPlus Advice has enthusiastically welcomed the Financial Conduct Authority’s move to ban debt packager firms from receiving referral fees. MoneyPlus Advice says the proposed regulation will do little to prevent such firms from finding ways to avert these actions therefore, the involvement and support from other professional bodies, such as…
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The Financial Conduct Authority (FCA) has proposed banning debt packager firms from being paid to refer customers to other firms. Debt packagers are regulated providers of debt advice, who refer customers to other providers of debt solutions. They rely on income from referral fees paid by these other firms. These fees can be many times…
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The Financial Ombudsman Service (FOS) is to review offers made by firms to their clients in early settlement cases. FOS that in light of concerns that taking a more neutral stance could jeopardise fairness and consistent outcomes it had proposed to present proactive offers from businesses ‘neutrally’ to customers, essentially making clear that in putting…
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