The FCA’s, Director of Consumer and Retail Policy has recently provided its view on where changes are required in the Consumer Credit market. This detail arising from a speech identified that Consumer credit remains a key priority for the FCA.
For this article, we will focus on a few takeaways identified from the speech.
Considerations raised by the FCA
It has concerns that consumer needs, particularly those in vulnerable circumstances require added protection
It is proposing a new Consumer Duty to set the standards for firms in all retail markets including consumer credit
It is scoping out the required items for regulation of buy-now-pay-later products with the consideration it carries risks and the potential for harm on consumers;
It will enhance focus on support for borrowers in financial difficulty and people who use high-cost credit products
What it means for you