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Why are we publishing this consultation paper?
In FSA CP13/7 we consulted on our high-level proposals for consumer credit firms. Based on the feedback we received we have finalised our proposals and made rules to apply the high-level standards in our Handbook to consumer credit firms.
Who should read this paper?
The majority of adults in the UK are customers, or potential customers, of financial services firms. So anyone may be interested in commenting on how we propose to regulate consumer credit firms.
In particular our proposals will interest:
Find out how we plan to regulate consumer credit firms and what that means for you.
Consultation paper
CP13/10 - Detailed proposals for the FCA regime for consumer credit:
What are the next steps?
Please send us your comments on our CP by 3 December 2013. You can do this by using our online response form, or using the contact details on page 4.
If you have any general comments not related to specific proposals please email us at: consumercredit2@fca.org.uk
Q1 Do you have any comments on the way our threshold conditions are being applied to consumer credit firms and/or the updates to our Handbook rules?
Q2 Do you agree with the updates to our draft Handbook rules for approved persons for consumer credit firms?
Q3 Do you have any comments on the updates to our draft rules regarding appointed representatives of consumer credit firms?
Q4 Do you have any comments on the criteria that we are proposing a person would have to fulfil to be a self-employed agent of a principal firm (as set out in Appendix 2)?
Q5 Do you have any comments on our proposed regulatory reporting regime?
Q6 Do you agree with our proposals to collect product sales data on high-cost short-term lending and home collected credit?
Q7 Do you have any comments on how we propose to carry across CCA and OFT standards, in particular in the areas highlighted above?
Q8 Do you have any comments on our proposed approach to financial promotions?
Q9 Do you agree with the definition of a high-cost short-term credit provider as set out at the start of this chapter?
Q10 Do you have any comments on limiting rollover to two attempts?
Q11 Do you have any comments on whether one rollover is a more appropriate cap?
Q12 Do you have any comments on our proposal to introduce a limit of two unsuccessful attempts on the use of CPAs to pay off a loan?
Q13 Do you have any comments on our proposal to ban the use of CPAs to take part payments?
Q14 Do you have any comments on our risk warning?
Q15 Do you have any comments on our proposals to require high-cost short-term lenders to provide information on free debt advice before the point of rollover?
Q16 Do you have any comments on the effectiveness of price capping?
Q17 Do you agree with our proposals on how to calculate our prudential requirement for debt management firms and some not-for-profit debt advice bodies? If not, what amendments would you suggest, and why?
Q18 Do you agree with our proposal to apply a transitional approach to prudential standards for debt management firms and some not-for-profit debt advice bodies?
Q19 Do you have any comments on our draft guidance on the debt counselling activity and our draft rules covering the provision of debt advice?
Q20 Do you have any comments on the rules that we propose to apply to peer-to peer lending platforms to protect borrowers?
Q21 Do you agree with our proposals for debt management firms and not-for-profit debt advice bodies that hold client money? If not, which aspects of the regime do you disagree with and why?
Q22 Do you agree with our proposed implementation timetable? If not, please give reasons.
Q23 Do you agree with our suggested amendments to the reporting requirements for second charge loans?
Q24 Do you agree with our proposal to allow all microenterprises to complain to the ombudsman service?
Q25 Do you agree with our proposal to include not-for-profit bodies providing debt advice in the Compulsory Jurisdiction?
Q26 Do you agree with our proposals on recording, reporting and publishing complaints?
Q27 Do you agree with our assessment of the impacts of our proposals on the protected groups? Are there any others we should consider?
In FSA CP13/7 we consulted on our high-level proposals for consumer credit firms. Based on the feedback we received we have finalised our proposals and made rules to apply the high-level standards in our Handbook to consumer credit firms.
Who should read this paper?
The majority of adults in the UK are customers, or potential customers, of financial services firms. So anyone may be interested in commenting on how we propose to regulate consumer credit firms.
In particular our proposals will interest:
- firms that currently hold individual or group consumer credit licences issued by the OFT under the Consumer Credit Act (CCA)
- firms that are considering carry out consumer credit activities, including debt recovery agents
- firms that want to carry out consumer credit activities in future
- trade bodies representing consumer credit firms
- consumer bodies
- firms offering high-cost short-term loans (payday lenders)
- not-for-profit bodies providing debt advice
- debt management firms
- other bodies currently involved in regulating consumer credit, including the Local Authority Trading Standards Services and the Department of Enterprise, Trade and Investment (Northern Ireland)
Find out how we plan to regulate consumer credit firms and what that means for you.
Consultation paper
CP13/10 - Detailed proposals for the FCA regime for consumer credit:
What are the next steps?
Please send us your comments on our CP by 3 December 2013. You can do this by using our online response form, or using the contact details on page 4.
If you have any general comments not related to specific proposals please email us at: consumercredit2@fca.org.uk
Q1 Do you have any comments on the way our threshold conditions are being applied to consumer credit firms and/or the updates to our Handbook rules?
Q2 Do you agree with the updates to our draft Handbook rules for approved persons for consumer credit firms?
Q3 Do you have any comments on the updates to our draft rules regarding appointed representatives of consumer credit firms?
Q4 Do you have any comments on the criteria that we are proposing a person would have to fulfil to be a self-employed agent of a principal firm (as set out in Appendix 2)?
Q5 Do you have any comments on our proposed regulatory reporting regime?
Q6 Do you agree with our proposals to collect product sales data on high-cost short-term lending and home collected credit?
Q7 Do you have any comments on how we propose to carry across CCA and OFT standards, in particular in the areas highlighted above?
Q8 Do you have any comments on our proposed approach to financial promotions?
Q9 Do you agree with the definition of a high-cost short-term credit provider as set out at the start of this chapter?
Q10 Do you have any comments on limiting rollover to two attempts?
Q11 Do you have any comments on whether one rollover is a more appropriate cap?
Q12 Do you have any comments on our proposal to introduce a limit of two unsuccessful attempts on the use of CPAs to pay off a loan?
Q13 Do you have any comments on our proposal to ban the use of CPAs to take part payments?
Q14 Do you have any comments on our risk warning?
Q15 Do you have any comments on our proposals to require high-cost short-term lenders to provide information on free debt advice before the point of rollover?
Q16 Do you have any comments on the effectiveness of price capping?
Q17 Do you agree with our proposals on how to calculate our prudential requirement for debt management firms and some not-for-profit debt advice bodies? If not, what amendments would you suggest, and why?
Q18 Do you agree with our proposal to apply a transitional approach to prudential standards for debt management firms and some not-for-profit debt advice bodies?
Q19 Do you have any comments on our draft guidance on the debt counselling activity and our draft rules covering the provision of debt advice?
Q20 Do you have any comments on the rules that we propose to apply to peer-to peer lending platforms to protect borrowers?
Q21 Do you agree with our proposals for debt management firms and not-for-profit debt advice bodies that hold client money? If not, which aspects of the regime do you disagree with and why?
Q22 Do you agree with our proposed implementation timetable? If not, please give reasons.
Q23 Do you agree with our suggested amendments to the reporting requirements for second charge loans?
Q24 Do you agree with our proposal to allow all microenterprises to complain to the ombudsman service?
Q25 Do you agree with our proposal to include not-for-profit bodies providing debt advice in the Compulsory Jurisdiction?
Q26 Do you agree with our proposals on recording, reporting and publishing complaints?
Q27 Do you agree with our assessment of the impacts of our proposals on the protected groups? Are there any others we should consider?
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