The Financial Services Consumer Panel (the Panel) has responded to two consultations on high-cost credit by the Financial Conduct Authority (the FCA): (a) overdrafts and (b) ‘buy now, pay later’ offers.
Overdrafts
Commending the FCA’s analysis, the Panel agrees with the FCA that ‘fundamental change’ is needed in the overdraft market. The Panel’s key points and recommendations seek to build on the FCA’s proposals to ensure the protection of consumers, by making overdrafts simpler, fairer and easier to manage.
‘Buy Now, Pay Later’
The Panel notes the consultation, on paper, makes proposals that better protect customers. However, it remains concerned about the likely effectiveness of information disclosure remedies given what it claims to know about firms’ exploitation of consumer behavioural biases.
The Panel
The Panel was established under the Financial Services and Markets Act 2000 by the FCA. The Panel represents the interests of consumers in the development of policy by the FCA for the regulation of financial services.