The unlocking of finance: Government moves consumer credit to the 21st century
The Finance & Leasing Association (FLA) welcomes the government’s significant changes to the Consumer Credit Act 1974 that will help unlock finance for individuals and businesses and help to grow the economy.
The government has followed the FLA’s lead during the course of formal consultations and discussion by making clear that this “will be the first step in moving many of the CCA’s detailed, prescriptive requirements out of legislation and into the Financial Conduct Authority’s (FCA) rulebook — making them easier to update as technology evolves.”
The repeal of the voluntary termination provisions, alongside the removal of sanctions and information requirement provisions, modernises consumer credit protection and gives lenders greater stability, which in turn will support increased funding for the real economy.
Shanika Amarasekara MBE, chief executive of the FLA, said: “These changes will be an important first step towards a better, more modern and clearer regulatory regime, benefitting consumers and firms to create a healthier credit market.
“Individuals and businesses captured by the consumer credit regime have not been well served by the CCA for a number of years. This is a real opportunity to reshape regulation and enable growth. FLA members are pivotal in driving that growth and acting as an engine for economic activity.
“We welcome this important step to modernise the consumer credit regime, and our members will play a full part in its success while we continue to work with policymakers to make further improvements.”