As part of our review of high-cost credit products, we have published our feedback to CP18/12 and final rules and guidance in relation to home-collected credit, catalogue credit and store cards.
As part of our work to foster alternatives to high-cost credit, we have also published finalised guidance for registered social landlords to provide greater clarity about the activities for which they are likely to require authorisation as credit brokers.
We are also consulting in this paper on extending some of our store card and catalogue credit remedies to point of sale retail finance firms providing Buy Now Pay Later (BNPL) offers as well as new remedies to make such offers more transparent and ensure that consumers do not pay backdated interest on sums repaid within the offer period.
- Responds to the feedback we received to CP18/12 which sought views on measures to reduce consumer harm and strengthen protections for consumers using home-collected credit, catalogue credit and store cards.
- Sets out our final rules and guidance, including, as part of our work to foster alternatives to high-cost credit, finalised guidance for registered social landlords (RSLs).
- Consults on a package of remedies for Buy Now Pay Later (BNPL) offers following the outcome of further work to look at outcomes for consumers.
- Provides a brief update on our work to promote alternatives to high-cost credit.
Taken together, we expect these measures to lead to improved sales practices, fewer hidden costs to consumers, protection against harmful repeat borrowing and more control for consumers over whether they want to discuss new or additional borrowing.
Who this applies to
- consumer credit lenders that provide, home-collected credit, catalogue credit and store cards
- firms who offer BNPL
- RSLs, credit unions and community development finance institutions (CDFIs) and commercial innovators in alternatives to high-cost credit
- stakeholders interested in helping consumers and firms looking to provide alternatives to high cost credit
It will also be of interest to trade bodies representing consumer credit lenders, consumers and consumer representative organisations.
This consultation has now closed.
On 12 June 2019 we published a Policy Statement confirming our final rules and guidance.