The Analysis Comment
Priorities for 2020
The Finance & Leasing Association has set out its agenda for the incoming government
Stephen Haddrill Director general, the Finance & Leasing Association
We have identified three improvements that the incoming government must adopt to transform customer protection in the consumer credit market, and strengthen the growth of a sustainable and productive economy.
Consumer Credit Act Our new report entitled ‘Priorities for 2020 and Beyond’ has highlighted the fact that the 45 year old Consumer Credit Act (CCA), which underpins every consumer credit transaction in the UK. We consider that the CCA is failing
consumers because not only does it require lenders to send old fashioned and severely worded letters to those in financial difficulty, but it actually delays how quickly lenders can step in to offer those customers more time to make payments.
Motor finance The CCA has also not kept up to date with the kind of innovation in the motor- finance sector that would needed in order to help to increase the uptake of low-emission vehicles. As currently drafted, we believe that the
act makes it unnecessarily complex for lenders to be able to finance a vehicle as well as its charging point in the same transaction.
January 2020
www.CCRMagazine.com
Information Finding the right finance at the right time is vital for small businesses to grow and thrive, but the reality for owners is that the search for finance often starts at the end of the working day. The UK’s patchwork of information
needs to be streamlined into one single, intuitive source that can diagnose the type of finance needed, signpost where to find it, and provide links to local growth hubs where the quality of business advice is consistent across the country.
because not only does it require lenders to send old fashioned and severely worded letters to those in financial difficulty, but it actually delays how quickly lenders can step in to offer those customers more time to make payments
We consider that the CCA is
failing consumers
Conclusion Government should reform the CCA urgently, rather than continuing to turn a tin ear to those in financial difficulty, or those trying to help them. Consumers need to be given a credible,
firm promise of legislation early in the new Parliament; legislation that will deliver protections appropriate for the twenty-first century. Although there is no shortage of online
business advice, it is less clear whether a small-business owner will be able to find, in one sitting, all of the information needed to decide on the appropriate finance for their circumstances. Remedying this would certainly be a great step to improving UK productivity. CCR
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