Consumer Credit Act reform

What firms should be thinking about now

HM Treasury has published its policy statement on reform of the Consumer Credit Act 1974, setting out what is likely to become the biggest change to the consumer credit framework in decades.

The reforms will gradually move many of the current CCA requirements into the FCA Handbook, giving the regulator more freedom to update rules around customer communications, disclosures, digital journeys and wider conduct standards.

For firms, this is more than a legal change. The likely impact stretches across compliance, operations, systems, governance and training. Areas such as agreements, notices, complaints, redress, Consumer Duty oversight and customer journeys may all need review as the detail develops.

Although the timetable is still emerging, the direction is now clear. Firms that begin assessing where these reforms may land across their business will be better placed when the FCA starts consulting on the replacement rules.

Auxillias has prepared a short briefing note covering the main proposals, likely timelines and practical actions firms should start thinking about now.

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We are also preparing a fuller review for clients, looking in more detail at the legal, operational and compliance impact of the reforms. We’ll be in touch with this in due course.;