In the Government's recently published response to its consultation on its approach to reforming the Consumer Credit Act 1974 (CCA), it has committed again to moving forward with an ambitious overhaul of the CCA. The Government still plans to develop proposals that move the majority of the CCA into the FSMA model. It is promising to see that in the next stages of the policy development the Government has committed to ensuring that its approach to reform is informed by data and a strong empirical evidence base. It is keen to understand from stakeholders what data they may be able to share to inform such analysis.
In this briefing we set out the Government's planned next steps and our key takeaways from the responses to the Government's proposals.
Key takeaway points and feedback covered in the HMT's response
Rights and protections
What does this reform mean for businesses?
The consultation is only the first stage in the reform process and the Government is planning to undertake further stakeholder engagement to produce more detailed proposals, with a view to publishing a second stage consultation in 2024. This will include discussions on possible timeline for implementation of the changes. The Government has stated that it is open to exploring whether a phased approach to implementation may be appropriate and is keen to hear representations from stakeholders on the desirability of such an approach.
It has confirmed that it will hold a series of bilateral meetings with industry and roundtables ahead of publishing its next consultation.
You can read our previous article covering Consumer Credit Act reform here.
Please get in touch with one of the authors of this article to talk about how this reform could impact your business.