Consumer credit changes

The regulation of consumer credit could be transferred to a new body – the FCA – following the launch of a new government consultation.

Launched by Mark Hoban, the Financial Secretary to the Treasury, and Ed Davey, Minister for Consumer Affairs, this new consultation aims to bring consumer credit into the same pigeonhole as retail financial services – moving it away from the OFT.

The government believes this move would create simpler structure, delivering improved consumer protection and removing the unnecessary regulatory burden on businesses.

Mark explained: “We do not underestimate the magnitude and complexity of such a reform, and recognise that any new regime must be flexible and proportionate, reflecting the diverse nature of the sector.”

The creation of the FCA is part of a wider reform of the financial reform structure in July.

Original article courtesy of Credit Today.

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