New Consumer Duty rules necessitate CCA reform
Commenting on today’s publication of the New Consumer Duty policy statement by the Financial Conduct Authority, Fiona Hoyle, Director of Consumer and Mortgage Finance at the Finance & Leasing Association said: “The consumer credit industry fully supports the underlying principle of the Consumer Duty – that consumers receive clear information about products and services that meet their needs and offer fair value, and that customer support is there when needed.
“However, today’s announcement thrusts the full responsibility for achieving this objective onto lenders, when in actual fact the real problem is the outdated and opaque, but nonetheless prescribed, information required to be sent to customers by the Consumer Credit Act (CCA).
“It is imperative that HM Treasury’s previous agreement to reform the Consumer Credit Act (CCA) is taken forward at pace.
“While we welcome the extension of the implementation deadline for the new Consumer Duty rules, it remains a mammoth task for firms to complete the required work within this timeframe.”