The UK government has committed to reforming the Consumer Credit Act – which regulates all credit card purchases and personal loans.
What does this mean?
The government will move much of the Act from statute to sit under the Financial Conduct Authority – enabling the FCA to quickly respond to developments in the consumer credit market, rather than having to amend existing legislation. It will also simplify ambiguous technical terms to make clear to consumers what protections they have - and make it easier and more cost effective for businesses to comply with regulation.
This represents a major change in the consumer credit landscape. With a consultation is expected to be published by the end of this year, keep an eye out for more important developments.