Latest Update Following Court of Appeal Decision
Below is a brief note on what we have learned over the last couple of weeks following the court of appeal decision in Johnson and others:
Many businesses are now back up and trading – using informed consent letters as a way forward.
There have been many disclosure statements in various documentation updated.
Both regulated and unregulated contracts are affected, but the FCA is not concerning itself with the unregulated market. This is for businesses to decide what steps they want to take.
Some lobbying organisations will look to support an application for an appeal as well as the FCA confirming that it will intervene in supporting lenders application for permission to the Supreme Court.
Lenders have until 22 November 2024 to appeal, and it’s likely to take a least a year before judgement is set down, and if fast tracked it could take up to 6-8 months.
The FCA is deciding on the next steps it needs to take whilst we are awaiting the outcome of the pause on complaints handling to end.
It might broaden the scope so therefore not just limited to DCA complaints in going forwards, but for any commission paid for credit brokering services.
Some indication from the FCA on its position and the direction it was deciding to take ie allowing the industry to set its own guidelines however, this has been heavily criticised and therefore the FCA might put out its own guidance to the industry.
There have been discussions with the Treasury on potential legislation around commissions.
Potential of staying legal proceedings on these commission claims.
We offer a range of services so please get in touch should you require any support.
We are particularly seeing instructions around the need of advice and guidance to understand whether any arrangements being conducted might get caught by the CONC rules or even under the court of appeal Judgement – also around the use of digital platforms, assistance with getting the right content in your disclosure statements, or even preparation with your informed consent letters.
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Schedule a free initial virtual consultation with our team by filling out this form to tell us what you would like support on. Alternatively you can call or email us on the details below.
Should you require any assistance on this topic - or indeed anything else - then please do not hesitate to contact us.
Jo Davis - 07741 240114 / Jo.Davis@auxillias.com
Daksha Mistry - 07458 304068 / Daksha.Mistry@auxillias.com
