FLA comments on the OFTs suspension power

Commenting on the Office of Fair Trading’s (OFT) final guidance on new powers to suspend consumer credit licenses, Stephen Sklaroff, Director General of the Finance and Leasing Association (FLA), said: “The OFT makes clear the immediate suspension of licenses would be reserved for the most serious of cases.  In other circumstances, businesses will be given an opportunity to make their case to an adjudicator before the suspension takes place.”

“A similarly proportionate approach will be needed in the design of the completely new regulatory system for credit which the Government intends to introduce early in 2014.

“The sooner we see the content of the new regime the better. Time is now growing short for the detailed discussions which will be needed to ensure the continued provision of affordable and responsible credit to millions of UK consumers.”

Notes 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 £76.3 billion of new finance to UK businesses and households. £54.9 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK.