Commenting on the publication of the Woolard Review into change and innovation in the unsecured credit market, Stephen Haddrill, Director General of the Finance & Leasing Association, said: “The recommendation to bring unregulated buy-now-pay-later products within the scope of the Financial Conduct Authority is welcome. We fully support the necessary legislative changes that will be needed to bring this about, but it is essential that Government avoids a piecemeal approach, simply adding another patch to the already threadbare Consumer Credit Act (CCA).
“Written almost 50 years ago, the CCA is no longer fit for purpose and nothing short of full reform will make it so. Indeed, the Woolard Review notes that change will be needed to the CCA to achieve a regulatory system that is more outcomes focused, and it also recognises that much of the groundwork for that reform has already been included in the FCA’s 2019 report on the Act.
“What we need now is Parliamentary time to review at the CCA in its entirety, with the aim of creating a workable, modern and intuitive solution that provides protection for consumers and certainty for lenders.”