Tag: Consultation

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Payment Systems Regulator consults on a specific direction on the implementation of the confirmation of payee service

On 9 May 2019, the UK Payment Systems Regulator (the PSR) published its response to the first consultation on the proposed implementation of the confirmation of payee service, and published a new consultation on a specific direction on the implementation of the service.

After considering the feedback, the PSR has refined its approach. It has decided to give a specific direction to Lloyds Group, Barclays Group, HSBC Group, Royal Bank of Scotland Group, Santander Group and Nationwide Building Society (being the six largest payment services providers).

The proposed effect of the specific direction is to require:

– From 31 December 2019: the directed PSPs must respond to compliant confirmation of payee requests; and

– From 31 March 2020: the directed PSPs must send confirmation of payee requests and present responses to their customers.

The consultation period ends on 5 June 2019.

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FCA publishes proposed new rules to help ‘mortgage prisoners’ re-mortgage or move to another lender

On 26 March 2019, the UK Financial Conduct Authority published a consultation paper, CP 19/14, called ‘Mortgage customers: proposed changes to responsible lending rules and guidance’ (the CP).

The CP proposes to revise the creditworthiness and affordability rules for certain customers who want to switch products, or re-mortgage with another lender, where:

– they are up to date with their payments under an existing regulated mortgage contract (and have been for at least 12 months) but are unable to do so because they do not meet the FCA’s detailed rules (which were introduced in April 2014 following the Mortgage Market Review); and

– they don’t want to borrow more (excluding any product or arrangement fee for the transfer or re-mortgage).

The CP contains the FCA’s proposed changes to the Mortgages and Home Finance: Conduct of Business sourcebook to (amongst other things) (a) relax those rules in certain circumstances and (b) contact customers who may be eligible.

The consultation period ends on 26 June 2019.