Reforming the Consumer Credit Act 1974

The Consumer Credit Act 1974 (CCA) has been a crucial piece of legislation for the UK’s £200bn consumer credit market for nearly 50 years. However, the CCA has become outdated and not always flexible enough to accommodate new developments and technologies.

In June 2022, the government announced its intention to reform the CCA and recasting it in FCA rules, in turn ensuring it is:

• Fit for purpose and keeps pace with technological advancements and changing consumer needs. 

• A more flexible regime, aligning it with today’s financial services regulation.

• Maintaining high levels of consumer protection whilst keeping costs low and allowing for product innovation that best serves their customers.

Auxillias has considered the consultation response and this white paper is a summary of our thoughts on the key points.

Download our white paper below to find out details, including information on:

• reform objectives and principles

• the scope of the CCA

• rights and protections

• sanctions

• financial inclusion and equality impact assessment

• conclusion and next steps

The government will now be undertaking policy development to produce more detailed proposals, with a view to publishing a second stage consultation in 2024 to seek comment from stakeholders. We shall be watching closely and will continue to share regular updates with you.

Just like all CCA reforms we’ve had over the years, the team at Auxillias will be here to support clients with the implementation and help navigate businesses through this complex area. This is likely to impact businesses in some way or another and Auxillias can help to provide guidance where needed and support in updating policies, procedures and processes and help deal with any technical issues along the way whilst adapting to the new changes.

If you would like to dicuss further, please get in touch!