The Financial Conduct Authority (FCA) has issued a press release setting out the outcome of its high-cost credit review (HCCR) together with new proposals on rules and guidance designed to protect consumers that use overdrafts and high-cost credit (the Proposals).
The Proposals are subject to further consultation and the FCA seeks feedback to the Proposals set out in two consultation papers concerning; CP18/12 High-cost Credit Review: Consultation on rent-to-own, home-collected credit, catalogue credit and store cards, and alternatives to high-cost credit and CP18/13 High-cost Credit Review: Overdrafts (the Consultations).
The Proposals aim to promote greater competition in the overdrafts market and reduce the harm to consumers utilising high-cost credit.
The proposals in the Consultations are expected to reduce costs for consumers and give them greater control over their finances, and include proposed changes to rules and guidance concerning:
- Overdrafts
- Rent-to-Own (RTO)
- Home Collected Credit (HCC), and
- Catalogue Credit and Store cards
Comments on the Consultation papers should be received by the FCA by 31 August 2018 with the expectation that draft rules will be finalised in Autumn 2018 and for the rules to be in force by 1 April 2019. Please click here to read our full briefing.
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