IRRV Alert - week ending 18th October 2013
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A new settlement for consumer credit: StepChange Debt Charity's Roadmap to the FCA
6th Floor, Lynton House,
7-12 Tavistock Square, London,
WC1H 9LT
Tel: 0207 391 4580
Fax: 0207 391 459
October 2nd 2013
Dear colleague,
Roadmap to the FCA: A new settlement for consumer credit – StepChange Debt Charity commissioned report
As you know, the Financial Conduct Authority (FCA) is about to publish its consultation on the rules for the regulation of consumer credit.
The FCA is due to take over responsibility for consumer credit from the OFT in April 2014 and we hope and expect that the new regime will succeed in preventing and easing some of the serious problems financially vulnerable people have suffered for far too long. We all want the same thing – a fair, competitive, credit market where consumers are protected from bad practice and unfit traders. We will only achieve this, however, if the FCA gets the new rules and regulatory approach right from day one.
To help the FCA achieve its aim, StepChange Debt Charity has commissioned an independent report, which we have published today – see attached. This ‘roadmap’ recognises the challenges faced by the FCA as it transitions to its new role, but rightly recommends a robust use of its new powers and a more pro-active approach to engagement with the credit industry. The report looks specifically at payday lending, which in many ways exemplifies what is happening across different credit markets, and then turns its attention to the debt management and debt collection sectors. In each area clear recommendations are made on how the FCA can best clean up the credit market and develop a new, fairer settlement for consumers.
We hope this report will stimulate debate and help the FCA deliver a regulatory regime that can help minimise problem debt in the UK.
Please get in touch with me if you would like additional information.
Yours sincerely,
Peter Tutton
Head of Policy
StepChange Debt Charity
Mark Haslam
Public Affairs Officer
StepChange Debt Charity
0207 391 4584
www.stepchange.org