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Topic: Consumer credit

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European Parliament draft report on the proposed Directive on consumer credits

July 20, 2022

On 12 July 2022, the European Parliament published compromise amendments on the draft report on the Proposal for a Directive of the European Parliament and of the Council on consumer credits. Overall, MEPs want better protection for consumers applying for loans online. The new EU rules aim at protecting consumers online from credit card debt, overdrafts and loans that are unsuitable for their financial situation. MEPs also introduced further requirements to assess the creditworthiness of people taking out a loan before it is granted. There should be clear consumer information and consumers should always obtain standard information so they can compare different offers, and understand the legal and financial consequences of loans and credit costs. MEPs would also like to increase the level of consumer protection and avoid over-indebtedness.

UK commits to reform of the Consumer Credit Act

June 30, 2022

On 16 June 2022, the government announced that it would be reforming the Consumer Credit Act 1974 and move much of the Act from statute to the FCA Handbook. The reforms will build on the recommendations of the FCA’s retained provisions report and the Woolard Review – which both made recommendations for a reformed regime. A consultation is expected to be published by the end of this year outlining the government’s proposals, and seeking views from stakeholders on how the Act should be reformed.

Government responds to BNPL consultation

June 30, 2022

On 20 June 2022, HM Treasury published the government’s response to its October 2021 consultation on the regulation of Buy-Now Pay-Later (BNPL) products.

Council adopts its position on new rules for consumer credit

June 30, 2022

On 9 June 2022, the Council of the EU issued a press release stating that it had adopted its general approach on the proposed revision of the Directive on consumer credit.

FCA speech: ‘Supporting consumers through tough times - priorities for credit regulation’

April 12, 2022

On 23 March 2022, the FCA published a speech by Brian Corr (Interim Director of Retail Lending, FCA) entitled ‘Supporting consumers through tough times – priorities for credit regulation’.

European Parliament publish draft report on the proposal for a directive of the European Parliament and of the Council on consumer credits

April 12, 2022

On 7 February 2022, the European Parliament’s Committee on the Internal Market and Consumer Protection published a draft report on the proposals for the directive on consumer credits.

New episode of RT Plus - HMT consult on the regulation of Buy Now Pay Later

November 10, 2021

A new episode of RT Plus is out now. In this latest episode we speak to Matthew Gregory and Joe Bamford about the Treasury’s consultation paper on the regulation of Buy Now Pay Later (BNPL) products.

FCA speech - Regulating for better outcomes - next steps in consumer credit

November 10, 2021

On 8 October 2021, the FCA published a speech by Nisha Arora (Director of Consumer and Retail Policy, FCA) entitled Regulating for better outcomes – next steps in consumer credit.

HM Treasury consultation on the regulation of Buy-Now Pay-Later

November 10, 2021

On 21 October 2021, HM Treasury issued its long anticipated consultation on the regulation of Buy-Now Pay-Later (BNPL) products.

New proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive

July 02, 2021

On 1 July 2021, the European Commission issued a proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive (CDD). The Commission also published the Annexes to the draft Directive, an impact assessment report, an executive summary of the report and a factsheet