Industry Thoughts

In an era defined by economic shifts and heightened regulatory scrutiny, the UK lending landscape has undergone a dramatic transformation over the last two decades. From the Credit Crunch in 2007 to the introduction of the FCA in 2013 and the subsequent rollout of the CONC sourcebook and creditworthiness rules, the focus has consistently sharpened on responsible lending and tackling consumer indebtedness

At Square 4, our flagship Consumer Duty thought leadership programme has given us unparalleled insight into a wide range of Consumer Duty board reports across wealth management, CASS, consumer credit, insurance, and banking. We’ve identified not just common themes and pitfalls, but also the strategies that set market leaders apart.

After decades of frustration, the UK government is finally doing what lenders, many trade associations – and yes, regulatory lawyers like me – have long called for: reforming the Consumer Credit Act 1974 (CCA). And not a moment too soon.

Dan Richard, Head of Remediation Programmes at Auxillias, explores the implications of the High Court’s June 2025 ruling in Vanquis Bank Ltd v TMS Legal Ltd, where for the first time, the tort of causing loss by unlawful means has been allowed to proceed in the context of mass consumer complaints. His piece outlines the case background, legal significance and what this means for CCTA members, especially as complaint volumes rise in areas such as motor finance.

On 18 July, the FCA published consultation paper CP25/23, outlining their proposed rules and guidance for BNPL lenders. The FCA is expected to issue their policy setting out final rules in early 2026, with regulation coming into force on 15 July 2026. Regulation will be limited to agreements offered by third-party lenders. Agreements provided directly by merchants will continue to be exempt from regulation.

You work with customers who often struggle to access mainstream credit. These customers need clear, understandable communications about their financial options – yet research reveals the surprising reality of customer understanding.

Debt is a deeply personal issue, and for many, it can be overwhelming and emotionally stressful. As financial pressures grow, the number of people seeking debt support is rising, particularly among younger generations. For debt management organisations, this creates both a challenge and an opportunity. The industry must meet evolving needs with empathy, while also improving efficiency and outcomes for younger, digital-led audiences.

The development of WhatsApp and various other live chat functions presents an opportunity to streamline the collections process while improving customer outcomes and experiences. For many years, collections departments have worked manually to support customers, engaging in emails and phone calls. This method is definitely more hands-on but inefficient and, at times, expensive. The emergence of automated chatbots provides a chance to reduce costs without hurting the customer journey.

Recently clients have been talking to us about overseas outsourcing, SaaS and leveraging technology, such as AI Agents. It is a challenging time for firms at the moment, and it is natural to want to seize upon opportunities for efficiency. While they are all different, there are key risk areas common to these scenarios, which businesses need to consider when designing these arrangements, in order to appropriately manage risk and comply with regulatory expectations.

Acquired.com’s UK Consumer Lending Payments Trends 2025 Report offers a contemporary lens on the evolving world of consumer lending. In a financial environment where borrowers are increasingly digital, discerning, and adaptive, UK lenders are under pressure to modernise their repayment and collections strategies. Our report is a comprehensive guide to the new realities shaping lender and borrower behaviours, drawing insights directly from interviews with 500 active borrowers.

Influencers are everywhere, and increasingly they’re talking about financial products. Sometimes, they even mention a firm’s name. But what happens when your brand is featured in a video you didn’t approve? It might seem like free publicity, but it could also be a regulatory headache.

Commercial lending is rapidly evolving, driven by the pressing need for financial institutions to address climate change and account for their environmental impact. A key element of this shift is “financed emissions” – the greenhouse gas emissions tied to loans and investments. While the concept is clear, accurately calculating and managing these emissions poses significant hurdles, particularly concerning data availability, standardisation, and attributing responsibility.