Retained Provisions of The Consumer Credit Act
Regulation of consumer credit activities has been something of a patchwork. Some elements are still covered by the original Consumer Credit Act 1974. This includes restrictions around broker fees and statutory instruments such as the form and content of credit and hire agreements.
In 2014, when FCA took over the regulation of consumer credit, they were asked to undertake a review of the areas outside of their current scope. FCA have now issued their final report to Parliament in March this year.
The report proposes no radical changes to the current framework of regulation. Largely this is because the FCA do not have the power to replicate existing statutory consumer protections, such as the risk of unenforceability. The area that FCA suggest could be transferred into their rulebook is requirements around information. This includes the provision on request of credit agreements, the provision on request of statements of account, the service of documents and the electronic transmission of documents.
The Treasury and Parliament now need to review FCA findings and make decisions on what actions to take next.