FG18/7: Fairness of variation terms in financial services consumer contracts under the Consumer Rights Act 2015

Open consultation: GC18/2
17/05/2018
Consultation closed
07/09/2018
Finalised Guidance
19/12/2018
19/12/2018
Finalised guidance First published: Last updated: 19/12/2018

This final guidance outlines factors financial services firms should consider under the Consumer Rights Act 2015 when drafting and reviewing variation terms in their consumer contracts.

Show FG18/7 (PDF)

Show FG18/7: Summary of feedback (PDF)

We consulted on this guidance in GC18/2 (PDF) and have made some revisions to it in the light of the feedback we received.

This 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.

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