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

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

The consultation closed on 7 September 2018.

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The draft guidance outlines a number of non-exhaustive areas the FCA believes firms should have regard to when drafting and reviewing variation terms.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. 

Next steps

We plan to issue a response in December 2018.