Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
All change for affordability criteria?
Financial Services analysis: What could Wonga entering into a voluntary requirement with the Financial Conduct Authority (FCA) mean for other payday lenders? Jacob Ghanty, partner within Berwin Leighton Paisner's financial regulation practice, analyses the significance of the case.
Wonga enters voluntary agreement with FCA, LNB News 02/10/2014 215
Wonga will have to make immediate changes to its business after it entered into a voluntary requirement with the FCA. Wonga will introduce new interim lending criteria aiming to improve customer outcomes, and will work to put in place a new permanent lending decision platform as soon as possible.
What is the background to the voluntary requirement?
The background is that the FCA took over regulation of consumer credit from the Office of Fair Trading (OFT) on 1 April 2014 and that signalled a change in approach by the regulator. The FCA is a lot more intrusive and interventionist than the OFT ever was and pretty much as soon as it took over it began to conduct a thematic review of payday lending companies. As part of that it focused, perhaps not surprisingly, on probably the highest profile lender in this market place, Wonga.
What did the FCA say about Wonga's actions leading up to the agreement?
Clive Adamson, director of supervision at the FCA, said:
'We are determined to drive up standards in the consumer credit market and it is disappointing that some firms still have a way to go to meet our expectations. This should put the rest of the industry on notice--they need to lend affordably and responsibly.'
I think they were expressing disappointment around progress made by some firms in this area and they've used the process in relation to Wonga in part it seems as a warning to the rest of the industry.
In advance of all this there had been a lot of speculation as to how the FCA would be different from the OFT in terms of the consumer credit market. I think a lot of people expected them to be a more aggressive regulator and that appears to be how it is turning out.
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234