CCTA View

The new report from Prudential on their Cha-Ching programme makes gloomy reading regarding the lack of momentum behind meaningful and permanent financial education programmes in the educational syllabus. As a previous Non Executive Director/Trustee of Credit Action ( now Money Charity ) I am dismayed that financial education still lacks a political leader with the political will to place this …

All aboard the Gravy Train… In the 1960s it was said that the British did not complain enough. Perhaps it was because those then in their mid-life had lived through the deprivations of the second world war less than twenty years before, and believed Prime Minister Harold Macmillan’s famous declaration that “most of our people have never had it so …

This week marks an important week in consumer credit as Credit Week brings together Europe’s largest gathering of credit professionals. The annual event, run by Credit Strategy reviews the current issues of the day through a variety of events that focus on the innovative, dynamic, and vitally important consumer credit industry. This includes the outlook for digital lending and open …

Last week, the think tank, Institute of Economic Affairs accused politicians of ‘jumping on the anti-finance bandwagon’ in a report[i] which reviewed the contribution finance makes towards economic life. The UK’s financial sector is one of the economy’s most productive, but it has taken quite a bashing since the previous financial crash and suspicion still surrounds the industry. The IEA …

With the Bank of England expected to increase interest rates as early as May, what will be the impact of this on the UK’s financially constrained households? A report published this week by the Resolution Foundation[1] examines the possible consequences. It maintains that whilst the majority of UK borrowers are relatively well placed for an interest rate hike, regard needs …

The CCTA’s Head of Legal & Regulatory Affairs, Graham Haxton-Bernard, attended the FCA roundtable meeting, which was was well attended by interested Trade Associations including representatives from the FLA and the CFA. The roundatable was hosted by various FCA staff including the Director of Authorisations. The discussion was lively and concentrated on the contents of the FCA’s Mission document:‘Our approach …

As governments worldwide are nervously clamping down on investors speculating on cryptocurrencies, the value of Bitcoin fell to its lowest level since mid-November dropping below $6,000.  Lloyds and Virgin Money have now banned customers from purchasing cryptocurrencies with their credit cards amid concerns they could be exposed to large unaffordable debts should the digital currency value continue to fall.  Plus, …

We have seen a very significant concession from the FCA today. The regulator has acknowledged that ‘the provision of high cost credit can have a socially valuable function’ and that access to legal, regulated sources needs to be maintained.  This is music to the ears to hundreds of responsible, specialist lenders serving small local communities up and down the country. These businesses are being …

Last month Volkswagen Financial Services published provisional figures for 2017 which revealed their number of worldwide customer financial contracts is expected to rise by 5.2% to 6.85 million.[1] In the UK, Volkswagen’s loan book is £15million, so it’s not surprising that Volkswagen has made an application for a UK banking license in order to continue providing consumer finance after Britain’s …

The CCTA welcomes the IFS report today, but we would guard against rash decisions on blunt instruments such as rate-capping suggested by some third parties. The ongoing dialogue and regulatory changes are resulting in meaningful solutions and positive outcomes for consumers. Further regulatory instruments and unwise intervention would mean reduced access credit and increased cost of credit. It should also …

The simplistic view of John McDonnell and others is credit equals debt, therefore get rid of the credit industry and you get rid of debt. Her Majesty’s Opposition is very clear that Britain is in the grip of a personal debt crisis. In a series of articles over the Christmas period, John McDonnell, the shadow chancellor, warned of an “alarming …

Until recently, many regulators have relied on aggregated data from larger lenders to monitor which lenders and products are driving credit growth. However, this data doesn’t include use of short-term high cost credit and non-mainstream products that many people with low incomes rely on. It also doesn’t show overall debts across different lenders and products. It is often questioned how …