FCA Conc and OFT Irresponsible Lending and Debt Collection Guidance

[Amethyst]

Okay, reading through CONC etc I'm confused as to how there are so many references within the rules and guidance to the ILG and the DCG of the OFT.

The OFT doesn't exist after 1st April so how can OFT guidance papers be reference by the FCA CONC as rules ?

For example

[Note: paragraphs 3.11c of DCG and 7.15 of ILG]

DCGFCA

1the Office of Fair Trading's Debt Collection Guidance.

which points you to '' Consumer Credit (Consequential and Supplementary Amendments) Instrument 2014. '' ( PDF - http://media.fshandbook.info/Legisla...CA_2014_12.pdf )




Which I can't really make head nor tail of.



Also, while I'm in confused mode;

In application of conc it states;

1This chapter applies, unless otherwise stated in or in relation to a rule, to1) a firm with respect to consumer credit lending;
(2) a firm with respect to consumer hiring;
(3) a firm with respect to operating an electronic system in relation to lending, in relation to a borrower under a P2P agreement;
(4) a firm with respect to debt collecting.




The definition of consumer credit lending is
FCA

12in accordance with article 60B of the Regulated Activities Order, entering into a regulated credit agreement as lender or exercising, or having the right to exercise, the lender's rights and duties under a regulated credit agreement.


and 60B of the Regulated Activities order is defined as
Regulated Activities OrderFCAPRA

the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544).4

in which 60B is about a funeral plan.

and if you go to the Amendments
The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2014

http://www.legislation.gov.uk/uksi/2014/366/contents/made

There's no mention of 60B



So I think I am being an idiot really but could do with a bit of a hand sussing it out.

[Nibbler]

Re: FCA Conc and OFT Irresponsible Lending and Debt Collection Guidance

The OFT doesn't exist after 1st April so how can OFT guidance papers be reference by the FCA CONC as rules ?

They aren't.

As far as I can see the CONC sourcebook is essentially Annex A of the CONSUMER CREDIT INSTRUMENT 2014.

The instrument says at the beginning, but omitted from the soucebook itself, that:

Notes

E. The Annex to this instrument contains notes (indicated by “ Note: ”) indicating where certain provisions which are included in the instrument were previously set out.

These notes are included for the convenience of readers but do not form part of the legislative text.

The notes include the following abbreviations in relation to guidance previously issued by the Office of Fair Trading or to secondary legislation:

(a) Irresponsible Lending Guidance (ILG);
(b) Debt Management (and credit repair services) Guidance (DMG);
(c) Credit Brokers and Intermediaries Guidance (CBG)
(d) Debt Collection Guidance (DCG);
(e) Mental Capacity Guidance (MCG);
(f) Second Charge Lending Guidance (SCLG);
(g) FSA/OFT Joint Guidance on Payment Protection Products (JGPPI);
(h) Consumer Credit (Advertisements) Regulations 2010, SI 2010/1970 (CCAR);
and
(i) Consumer Credit (Advertisements) Regulations 2004, SI 2004/1484 (CCAR).

So as not part of the legislative text, they are not part of the rules, but are just there for information purposes when they had their origin in previous guidance/rules/legislation.

That is how I understand it anyway?

Would help if they had copied that explanation to the start of the sourcebook section itself.

[Amethyst]

Re: FCA Conc and OFT Irresponsible Lending and Debt Collection Guidance

Ah haaaaaaaa marvellous you are an absolute star Nibbler, thank you.

Any ideas of the second question ? the definition of consumer credit lending ?

[Nibbler]

Re: FCA Conc and OFT Irresponsible Lending and Debt Collection Guidance

It's always a pain trying to work out how the various statutory instruments stitches together to make up current legislation as it stands, but wthereevr it fits in to the part you are asking about is here I think?

http://www.legislation.gov.uk/uksi/2...article/6/made

[Amethyst]

Re: FCA Conc and OFT Irresponsible Lending and Debt Collection Guidance

Thank you ! Should have asked a couple weeks ago when I started getting confused lol.

Regulated credit agreements

60B. (1) Entering into a regulated credit agreement as lender is a specified kind of activity.

(2) It is a specified kind of activity for the lender or another person to exercise, or to have the right to exercise, the lender’s rights and duties under a regulated credit agreement.

(3) In this article—

“credit agreement” means an agreement between an individual or relevant recipient of credit (“A”) and any other person (“B”) under which B provides A with credit of any amount;

“exempt agreement” means a credit agreement which is an exempt agreement under articles 60C to 60H;

“regulated credit agreement” means any credit agreement which is not an exempt agreement.

http://www.legislation.gov.uk/uksi/2...article/6/made