FCA to review Consumer Credit Act provisions

The FCA took over responsibility for regulating consumer credit on 1 April 2014 from the Office of Fair Trading. As part of the transfer of regulation, Parliament repealed some CCA provisions, and some of these were replaced by FCA rules. The FCA is required to review remaining CCA provisions and to report to HM Treasury by 1 April 2019.

The review will consider which provisions of the CCA could be replaced by FCA rules or guidance and whether the repeal of CCA provisions would adversely affect the appropriate degree of protection for consumers.

The regulator is currently seeking views on whether to prioritise particular provisions for review, whether provisions should be considered for earlier review, and how best to engage with stakeholders.

Reasons for prioritising provisions for review include that they provide particular benefits for consumers, are particularly burdensome on firms without a commensurate benefit, or are particularly complex.

Christopher Woolard, Director of Strategy and Competition, said:

“This is a real opportunity for everyone with an interest in consumer credit to help us plan our review and to shape the regime. We are looking forward to working with consumer groups, trade bodies, firms and others to help ensure that regulation remains appropriate in a fast-changing market.”