In Focus Risk
Catalogue credit also remains a concern for the FCA, particularly the complexity of charging structures and how people are offered choices to make repayments
than they would have, if they had maintained separate loans. The FCA has requested further data from
firms on their lending patterns, and the nature and extent of refinancing, to examine ways in which other borrowing options could work better for consumers.
Catalogue credit Catalogue credit also remains a concern for the FCA, particularly the complexity of charging structures and how people are offered choices to make repayments. These mean that many consumers may
not understand key features, or may not be making informed choices. The FCA is gathering evidence on firms’
policies, including the information they provide to customers, and doing consumer research to better understand consumer use of these products.
Alternatives to high-cost credit The FCA has set out a series of commitments on initiatives to support greater consumer access to alternatives to high-cost credit. This includes working with government to
clarify our expectations of social landlords, and others, so that they can feel confident
in signposting their clients to alternatives to high-cost credit. The FCA will also highlight best practice
that lowers the demand for high-cost credit, such as providing white goods when tenants move into a new property. The FCA is inviting innovators in this
space to bring forward ideas that are in the interest of consumers and test them, if necessary as part of the FCA Sandbox.
Next steps In most areas, the FCA intends to publish conclusions and proposals for consultation in the Spring. Overdrafts will be addressed as part of the FCA’s Strategic Review of Retail Banking Business Models, which we will report on later this year. CCR
Edited from High-Cost Credit Review – update, published by the Financial Conduct Authority.
The Revolution is coming. March 2018
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