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Comment on new consumer credit rules

Commenting on the publication of new Consumer Credit Rules from the Financial Conduct Authority (FCA), Joanna Elson, Chief Executive of the Money Advice Trust, said:
“We believe the transfer of regulatory control to the FCA will provide a boost for consumer protections. We especially welcome rules that require customers with high-cost credit in clear financial difficulty to be referred to free debt advice services. Nine out of ten people who speak to a National Debtline adviser say they feel more in control of their finances as a result.
“The new two tier regime of regulatory scrutiny should help ensure consumers are protected from some of the worst practices in the industry. Mandatory affordability checks have the potential to prevent much of the harm we see in some credit markets, and so it is important these are rigorously enforced.
“Despite the optimism for the broader economy these are challenging financial times for many households across the UK, the FCA has a tough job in ensuring the consumer credit market is given room to innovate in order to meet the needs of a changing economy whilst also protecting consumers from bad practices. We hope the publication of these rules marks the start of a successful transition.”
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