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February 25, 2015updated 12 Apr 2017 3:54pm

FCA proposes changes to consumer credit rules

UK regulatory body the Financial Conduct Authority (FCA) has issued a consultation paper on potential changes it intends to implement to its regulations, touching on topics including financial promotions, arrears and credit broking.

By Verdict Staff

UK regulatory body the Financial Conduct Authority (FCA) has issued a consultation paper on potential changes it intends to implement to its regulations, touching on topics including financial promotions, arrears and credit broking.

The key proposals of the paper include allowing firms to introduce continuous payment authority to collect repayments where a customer is in arrears or default and the lender is exercising forbearance.

The proposals also seek to amend current rules regarding the relative prominence of representatives, and to make the FCA current guidance on the clear, fair and not-misleading principle a rule.

Guarantor lenders will also be required to provide adequate explanations to guarantors assess their creditworthiness and treat them with forbearance, if the proposals are followed through on.

For credit brokers, the FCA said it is seeking views and evidence on appropriate remuneration structures for brokers, and whether new rules should be considered. The paper also asks for views on some of the rules changes made in December 2014, which were done without consultation.

The proposal is open to response until 6 May 2015.

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