FLA comments on FCA consumer credit consultation paper

Commenting on the publication of the Financial Conduct Authority’s (FCA) proposals for the new consumer credit regime, Stephen Sklaroff, Director General at the Finance & Leasing Association (FLA) said: “Today’s new rules for credit go far beyond the payday sector and have implications for all UK credit customers.

“The FCA recognises that the timetable for implementing the new system (which includes a new 400-page rulebook) is very challenging and says that it expects a reduction in the availability of credit in some markets. The industry will be working with the FCA in the coming months to try to minimise any adverse impact on customers.”

Note to editors:

1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and short-term credit lenders, and instalment credit providers.
2. In 2012 FLA members provided £76.6 billion of new finance to UK businesses and households. £55.1 billion of this was in the form of consumer credit representing about 30% of all unsecured lending in the UK.