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The Credit Services Association (CSA)
FCA launch consultation
CP15/6: Consumer credit - proposed changes to our rules and guidance
Launched today (24 February 2015), CP15/6 outlines proposed policy changes to the FCA consumer credit regime. With the aim to consult on intended changes designed to address potential areas of harm to consumers that the FCA has observed in the market, other changes include clarifications and amendments to ensure rules clearly reflect policy intention, or deal with issues raised by firms and other stakeholders.
One key proposal includes collecting a debt via continuous payment authority (CPA). CPA can be in the interest of consumers as they do not typically trigger bank charges, unlike direct debits. However, at the moment lenders can only take payment by CPA if it is included in the terms of the original credit agreement. The FCA is proposing to allow firms to use CPAs for agreed repayment plans, as long as the customer is clear on why it is being used and agrees to the arrangement. FCA rules regarding the misuse of CPA will continue to apply.
Other key proposals in this consultation paper relate to:
- Credit broking
- Guarantor lending
- High-cost short-term credit
- Financial promotions
- Arrears, default and collection
For further information you may contact the FCA.
If you have any further queries, please email our dedicated FCA email address - firstname.lastname@example.org.