FLA comments on FCA’s review of retained provisions of the Consumer Credit Act

Commenting on the Financial Conduct Authority’s (FCA) review of the retained provisions of the Consumer Credit Act, Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said:

“We welcome this long-awaited review of the remaining provisions of the Consumer Credit Act (CCA), and have already suggested to the FCA a list of out-dated provisions where changes are needed.

“For instance, the wording of statutory notices required to be sent to customers in financial difficulties is abrupt and not in keeping with modern customer service – and a long history of overly complex provisions have, on occasion, left customers and firms with no choice but to seek clarity through litigation.

“We’ll be seeking our members’ input to help make sure that we get a regime fit for the 21^st century.”

Notes to editors

1. The Finance & Leasing Association is the leading trade body for the asset, consumer and motor finance sectors in the UK, and the largest organisation of its kind in Europe.

2. 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 instalment credit providers.

3. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £81 billion of this was in the form of consumer credit representing almost a third of total new consumer credit written in the UK in 2015.