Financial Regulation - In the know: Consumer Finance – July 2026

(3 min read)

Recent developments in UK financial services highlight both the opportunities and challenges arising from a rapidly evolving regulatory landscape. The increasing use of artificial intelligence (AI) in consumer finance and the proposed reform of the Consumer Credit Act 1974 (CCA) are expected to have significant implications for firms’ governance, compliance, customer interactions and risk management frameworks. Firms operating in retail financial services, consumer credit and related markets should understand the direction of travel, assess how emerging regulatory expectations may affect their business models, and begin preparing for changes that could reshape consumer protection, accountability and the delivery of financial products and services in the years ahead.

Mills Review: Consumer finance aspects

In July 2026, the FCA’s Mills Review was published. It explains how AI will reshape UK consumer finance, moving from simple digital tools to highly personalised, “agentic” AI that can act on customers’ behalf. It outlines the opportunities and risks this creates such as over reliance on AI, bias, uneven access to advanced tools, and complex accountability. It also sets out what firms should do on governance, transparency, personalisation and maintaining non AI channels for customers.

Please read our article here discussing key aspects of the Review

Consumer Credit Reform: Progress on the Financial Services and Markets Bill and Next Steps

The Financial Services and Markets Bill 2026 marks a significant step in the reform of the Consumer Credit Act 1974, replacing many prescriptive statutory requirements with a more flexible regime overseen by the Financial Conduct Authority (FCA). Consumer credit lenders, banks and other regulated firms should note that, while there is broad support for modernisation, House of Lords debates have highlighted concerns around consumer protection, redress, legal certainty and parliamentary oversight.

Please read our insights here on the progress of the Bill and key themes emerging from the parliamentary debates

Upcoming events

For information on our upcoming training events including our Regulatory Essentials programme, please visit our Financial Regulation page on our website.