The Treasury has published its policy statement today on reform of the Consumer Credit Act 1974 (CCA). Reform of the CCA is an important step towards a more flexible regime that supports effective competition and innovation, while maintaining appropriate consumer protection both now and in the future. The proposals set out a framework that places greater emphasis on FCA rules and guidance rather than prescriptive requirements set out in legislation.
We intend to consult on the key elements of the consumer credit framework previously set out in legislation, where we have the powers to do so, considering the whole consumer credit process.
Our approach will be underpinned by the Consumer Duty – which sets our expectations for firms to deliver good outcomes for consumers.
As part of our policy development, we will consider existing consumer rights and protections, including for example, cancellation and withdrawal, and termination of agreements, including early settlement. Any proposals would be supported by evidence, including a cost benefit analysis and stakeholder feedback.
We will continue to work closely with the Treasury, Government, Parliament, consumer bodies and other stakeholders as the reform programme develops. We will communicate openly about our emerging approach and next steps in due course.