White paper: Deeper dive review of consumer credit reforms

What the government’s plans could mean for motor finance and the wider consumer credit market

The Government has set out its plans for reform of the Consumer Credit Act 1974, with a large number of statutory provisions due to be repealed, retained or moved into FCA rules.

Motor finance is particularly exposed. Voluntary termination, default notices, Notices of Sums in Arrears, early settlement and consumer hire termination are among the areas due to move into the FCA Handbook. Protected goods provisions will remain in legislation, while sections 56, 75, 75A and 140A-C have been held back for further policy work.

Auxillias’ new white paper looks at the proposed reforms in detail, with a particular focus on the provisions used by motor finance lenders. It also examines transition, legacy agreements, credit broking and the work firms can start before the FCA publishes its detailed rules.

The paper includes Auxillias’ view on the areas likely to have the greatest practical impact and sets out what firms may want to do now - including mapping where CCA provisions sit within agreements, systems and processes, assessing back-book exposure and giving the reform programme clear ownership.

Download the full white paper here: