The consumer credit landscape today

The FCA has published a speech by its CEO, Andrew Bailey, which is entitled The consumer credit landscape today. Highlights in the speech include the FCA: has been regulating consumer credit for almost four years and it continues to be a key sector for the regulator; is looking at developments in consumer credit to ensure that lending is affordable and sustainable; and recognises that consumer credit is not a monolithic market and it is intervening on specific products including credit cards, overdrafts and rent-to-own. Among other things Mr Bailey discusses Personal Contract Purchases (PCPs). He explains that the use of PCPs has grown rapidly in recent years and the majority of new car finance is now in this form. The shift to PCP based lending to finance cars recognises the nature of a car as an asset, with consumers more comfortable leasing or renting than owning outright. That said the FCA is looking carefully at a number of possible conduct approaches by lenders: Are firms…

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