Consultation On Changes To Current System To Run Until December

The Financial Conduct Authority (FCA) has outlined its proposed regime for the regulation of consumer credit, as it prepares to take over responsibility of the area in April next year.

According to the body, its new system will lead to the provision of stronger protection and better outcomes for consumers than the current regime and includes new requirements on payday lenders and mandatory affordability checks on borrowers.

The FCA regulation is expected to apply to any company offering credit cards and personal loans, as well as those selling goods on credit, offering goods for hire or providing debt counselling or adjusting services to consumers.

FCA chief executive Martin Wheatley said the aim was to strike a balance in the regime which “protects consumers and allows business to operate”.

The consultation on the regulation changes is set to run until the start of December.

Expert Opinion

The launch of the consultation shows how the FCA are not only trying to provide better support to consumers, but also to ensure businesses are able to properly function in this important market. <br/> <br/>"We would urge all businesses involved in this area to take time to consider the proposals and ensure they make sure their voices are heard regarding any concerns that they may have regarding them. <br/> <br/>2Once this process is completed and the regulations finalised, it will also be vital for companies to ensuring they are operating within the new regulatory framework that the FCA introduces in April next year."