GC18/2: Fairness of variation terms in financial services consumer contracts under the Consumer Rights Act 2015

Open consultation: GC18/2
17/05/2018
17/05/2018
Consultation closes
07/09/2018
Finalised Guidance
December 2018

We are consulting on new guidance on unfair contract terms following the introduction of the CRA and in light of a number of rulings on variation terms in the Court of Justice of the EU.

Show GC18/2 (PDF)

The proposed guidance outlines factors financial services firms should consider under the Consumer Rights Act 2015 (CRA) when drafting and reviewing variation terms in their consumer contracts.

The draft guidance outlines a number of non-exhaustive areas the FCA believes firms should have regard to when drafting and reviewing variation terms. These include and are not limited to the following:

  • The validity of the reason(s) for using the variation term
  • The transparency of the variation term
  • Provision for notice in the variation term
  • Provision for the freedom to exit the contract should a consumer not wish to accept the variation

Who this applies to

This guidance will be of interest to financial services firms, trade associations, consumers, and consumer representatives.

What you need to do

Please send us your comments by 7 September 2018:

You can send your response in the following ways:

  • email [email protected] or
  • write to: Tina Archer, Consumer Contracts Team, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

We make all responses to formal consultations available for public inspection unless the respondent requests otherwise. We will not regard a standard confidentiality statement in an email message as a request for non-disclosure.

Next steps

We will carefully consider your feedback to this consultation and plan to issue a response in December 2018.