New Consumer Duty rules necessitate CCA reform

27 July 2022

Commenting on today’s publication of the New Consumer Duty policy statement by the Financial Conduct Authority, Fiona Hoyle, Director of Consumer and Mortgage Finance at the Finance & Leasing Association said:

“The consumer credit industry fully supports the underlying principle of the Consumer Duty - that consumers receive clear information about products and services that meet their needs and offer fair value, and that customer support is there when needed.

“However, today’s announcement thrusts the full responsibility for achieving this objective onto lenders, when in actual fact the real problem is the outdated and opaque, but nonetheless prescribed, information required to be sent to customers by the Consumer Credit Act (CCA).

“It is imperative that HM Treasury’s previous agreement to reform the Consumer Credit Act (CCA) is taken forward at pace.

“While we welcome the extension of the implementation deadline for the new Consumer Duty rules, it remains a mammoth task for firms to complete the required work within this timeframe.”

 Notes to Editors

  1. FCA’s New Consumer Duty policy statement
  2. 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, over a third of total new consumer credit written in the UK in 2021. £45 billion of it supported the purchase of new and used cars, including almost 92% of private new car registrations.
  3. For media enquiries, please contact the FLA press office on 020 7420 9656.

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