HM Treasury agrees to reform the Consumer Credit Act

Stephen Haddrill, commenting on the news that HM Treasury has agreed to reform the Consumer Credit Act (CCA):

“This is a great result. We have campaigned for CCA reform on behalf of our members and their customers over several years, and I am very pleased indeed that the Economic Secretary to the Treasury, John Glen, has confirmed that this will now go ahead.

“The CCA’s tendency to complicate and delay that which should be simple and quick meant that it was barely up to the task of regulating business and protecting customers during benign periods, but during the pandemic, it fell well short of lender and customer expectations.  

“We look forward to working with Treasury and FCA colleagues ahead of the Government’s consultation towards the end of 2022.”

 Note to editors:

1. In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2021. £31 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2021.
2. For media enquiries, please contact the FLA press office on 020 7420 9656