FCA publishes Call for Input on the review of retained provisions of the Consumer Cre

[Legal Beagles]

The Financial Conduct Authority (FCA) has today launched a Call for Input on the review of retained provisions of the Consumer Credit Act 1974 (CCA).

http://www.fca.org.uk/news/fca-publi...mer-credit-act

[Nibbler]

Re: FCA publishes Call for Input on the review of retained provisions of the Consumer

[Amethyst]

Re: FCA publishes Call for Input on the review of retained provisions of the Consumer

Nudge as closing date is 18th May - so if anyone has something to say, now is the time to say it.

[Amethyst]

I'm sure I updated this somewhere - but the interim report is here https://www.fca.org.uk/publication/d...ion/dp18-7.pdf and any input is required by 3rd November.

Main parts look okay for now

140 ( Unfair Relationships )

The broad power to re-open and recalibrate an individual contractual relationship

between a debtor and a creditor, where it is appropriate to restore a fair balance

between the parties, has been a key protection in consumer credit regulation for a

number of years. Our initial view is that we do not consider that it would be appropriate,

from a consumer protection perspective, to remove the ability of a debtor or surety to

ask the court for relief from the consequences of an unfair relationship

S.77-79

6 .17

Our initial view is that most of the information requirements set out in the CCA and its

regulations could, in principle, be replaced by FCA rules (see Table 2 below). However,

as explained in Chapter 7, the associated sanctions cannot be replaced by FCA rules

under our current rule-making powers. These are:

•

unenforceability of agreement without a court order

•

unenforceability of agreement during the period of non-compliance

•

disentitlement to interest and default sums in respect of the period of non-

compliance

6.18

We discuss these sanctions in Chapter 7, and set out our initial view that the loss

of these sanctions would adversely affect the appropriate degree of consumer

protection.

6.28

For example, section 77 could be repealed and replaced, with the exception of section

77(4) on unenforceability. This subsection would remain in the CCA but would need to

be amended to apply the sanction to breaches of FCA rules.

6.29

This could apply to a large majority of CCA information requirements, including those

in regulations (but see also other options for sanctions in Chapter 7).

[quote]

and then most of section 7

7. 3 6

In the absence of unenforceability, the remedy available to customers under FSMA for

breach of an FCA rule would be the private law action of breach of statutory duty under

section 138D FSMA. We do not think that breach of statutory duty, as a substitute for

unenforceability, would achieve a comparable standard of protection for consumers in

the consumer credit market.

Article about it here https://www.hoganlovells.com/en/blog...on-ice-for-now