On 31 May 2018 the FCA unveiled the next steps in its work in relation to its review of High Cost Credit. This comprises 2 consultation papers – CP18/12 and CP18/3.
The first paper sets out what the FCA proposes on relation to the rent-to-own, home collected credit, catalogue and store card markets and the other its proposals on bank overdrafts. The papers are separate but they form a package. The main closing date for consultation responses is 31 August 2018 but 2 questions have an earlier cut off date of 13 July 2018.
The Financial Regulation team at Addleshaw Goddard have analysed these two papers and a client briefing note on each paper can be found here:
- FCA overhauls overdrafts - overview
- Summary of the proposals from the FCA in its high cost credit review
The FCA wants to have rule changes to implement its proposals in force by April 2019 so firms need to start their plans to implement these changes.