Consumer credit regulation
Consumer credit regulation is designed to support people’s access to credit, ensure fair treatment for consumers from lenders, and provides safeguards to help prevent people from getting into unsustainable levels of debt
Consumer credit regulation is designed to support people’s access to credit, ensure fair treatment for consumers from lenders, and provides safeguards to help prevent people from getting into unsustainable levels of debt
Consumer credit regulation is designed to support people’s access to credit, ensure fair treatment for consumers from lenders, and provides safeguards to help prevent people from getting into unsustainable levels of debt. Recent measures, detailed below, will ensure consumers have adequate protections, particularly the most vulnerable, and promote sustainable lending behaviour.
From 21 December to 21 March BIS and HMT held a consultation which considered the merits of transferring responsibility for consumer credit regulation from the Office of Fair Trading (OFT) to the proposed new Financial Conduct Authority (FCA)(which had the earlier working title CPMA). . The Government believes that transferring consumer credit regulation from the OFT to the FCA provides an opportunity to significantly improve the way consumer credit is regulated and to create a simpler, more responsive regime. Full details of this consultation and the responses to it can be found at: A new approach to financial regulation - Consultation on reforming the consumer credit regime
The Consumer Credit Directive (CCD) was adopted by the European Council in May 2008, and legislation implementing the provisions will come into force on 1 February 2011 (although lenders can start complying earlier).
Following the Credit and Store Card Review consumers now have five new consumer rights which will give them more control over the way in which they can choose and use their credit and store cards. More details can be found at the "Credit and store card review" page.
