Consumer credit—essentials
Consumer credit—essentials

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Consumer credit—essentials
  • The FCA consumer credit regime
  • Legislative and other resources for consumer credit
  • CCA 1974 Retained and repealed legislation and the FCA’s review of the retained CCA 1974 provisions
  • FCA supervisory approach to consumer credit firms
  • Consumer credit agreements
  • Application of the Consumer Credit Disclosure Regulations
  • Credit activities under the appointed representative regime
  • Consumer credit financial promotions regime
  • Consumer credit passporting regime
  • more

BREXIT: As of exit day (31 January 2020), the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance on the impact of Brexit on the consumer credit regime, see Practice Note: Impact of Brexit: Consumer credit—quick guide.

The FCA consumer credit regime

On 1 April 2014, the Financial Conduct Authority (FCA) assumed responsibility for consumer credit regulation from the Office of Fair Trading (OFT) (which ceased to exist). The FCA became the conduct supervisor for all regulated firms across the consumer credit sector, including (but not limited to), consumer lending, credit card issuers, debt management, credit brokerage, credit referencing, hire purchase firms, banks, financial advisers, pawnbrokers, mail order companies, debt collectors and payday loan lenders. The change in the regulator resulted in all firms previously licensed by the OFT, entering into a regulatory regime through which they were required to become authorised by the FCA or, if they were already authorised by the FCA, to vary their permission to cover the consumer credit related activities that they performed. OFT licenses lapsed, and all firms were required to obtain authorisation either by: (i) following the correct