Tag: FCA

Posted on

FCA Credit Information Review

On 27 June 2019, the Financial Conduct Authority (FCA) launched its market study into the credit information market. It’s been launched because of the FCA’s concerns about the coverage and quality of credit information, the effectiveness of competition between credit reference agencies and the extent of consumer engagement.

The FCA’s aim is to get a better understanding of how the credit information market now works and how it may develop in the future by making it work more effectively for credit information user and consumers (where appropriate). 

The market study will focus on: 

  • the purpose, quality and accessibility of credit information
  • market structure, business models and competition
  • consumers’ engagement and understanding of credit information and how it impacts their behaviour

The FCA’s market study is not unsurprising.  Consumers are becoming much more aware of their credit report and rating (with a little help from comedian Marcus Brigstocke) and how this affects their ability to obtain credit.  A simple search of the Financial Ombudsman Service’s decision for May 2019 reports 324 decisions for consumers complaining about their credit reports. 

The FCA will report on its preliminary conclusions in Spring 2020 including, if appropriate, a discussion of potential remedies. 

https://www.fca.org.uk/news/press-releases/fca-launches-review-credit-information-market

Posted on

Cycle insurance provider gives undertaking to the FCA on the fairness of a term

On 26 June 2019, the UK Financial Conduct Authority published an undertaking given by ETA Services Limited about the fairness of a term in its cycle insurance policy. The undertaking was given under the Consumer Rights Act 2015.

The FCA’s concern was over the transparency of a term allowing ETA Services Limited to reject a claim if a bicycle had not been secured using an approved lock. This term appeared to conflict with another term saying a claim would be rejected if the bicycle had been left in a communal building and not secured to an immovable object (so no mention of an approved lock).

ETA Services Limited told the FCA that since 1 April 2019, the terms had been revised so that, to be covered, a bicycle needed to be secured using an approved lock when left in communal buildings. ETA Services Limited, and the insurer, also assured the FCA that redress had been paid to consumers who had claims rejected because they did not use an approved lock in communal areas.

Posted on

Speech by Jonathan Davidson on what the consumer credit sector can expect from the FCA

On 21 March 2019, the FCA’s Executive Director of Supervision – Retail and Authorisations, Jonathan Davidson, gave a speech on what the consumer credit sector can expect from the FCA.

There are some key messages including:

– There has been a lot of change in the sector.

– The FCA will continue to focus on affordability, business models and culture.

– Brexit will not change the way the sector is regulated.

– The FCA’s focus in the high-cost sector is on (a) re-lending and (b) affordability (particularly on guarantor lending).

– The Senior Manager & Ceritifcation Regime will help improve culture.

The speech ends by saying: “My top top for today is to keep ahead of the rules, you can invest in expensive tick box compliance or you can get on top of your culture., A healthy purposeful culture will be the best way to deliver value for you, your clients and your business”.