19
Mar 2014
Consumer Credit Changes
From April 1st the FCA will be taking over from the OFT as the main regulator of Consumer Credit agreements. This will result in a number of consumer credit changes and consumer credit regulation changes.
Previously, consumer credit has always been regulated by itself, rather than alongside other retail financial services. The government felt this left a weakness is the regulatory system which was being abused.
So, from the 1st April, all regulation of financial services will be carried out by the FCA and there will be an overhaul of the Consumer Credit licensing systems.
The timescales for the new systems to be brought into place are relatively short and prudent businesses are already preparing for the changes. Notably, businesses have until 31st March to check that their consumer credit licence is up to date and to apply for interim permission to continue offering consumer credit, based on their existing licence.
With the new changes to Consumer Credit, and the proposed revolution to consumer protection in the form of the Consumer Rights Act, 2014 promises to be an exciting time in the consumer contracts field.
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