‘The Future of Credit’ research – comments by CCTA CEO

Published 22 February 2023

Nice to be invited to the Finance and Leasing Associations dinner tomorrow, always a remarkable event. More important than the invitation to dinner is the strong collaboration between credit associations on issues that are of importance to our members. One of the common areas of work is the promotion of the value of credit to UK families and businesses. So, I was pleased to see the work being carried out by the FLA on the use of credit and especially the future of credit.

Commission and disclosure – update

Published 14 February 2023

Earlier in the year we wrote out to all our members with an interest in motor finance about the increased regulatory interest around commission disclosures. I recently had the opportunity to join other trade association representatives in a discussion with the Financial Ombudsman Service (FOS) about issues or sectors that might attract more customer complaints.

FOS discussion update

Published 09 February 2023

It was good to talk to the Financial Ombudsman Service earlier in the week. We raised some concerns that our members had during the FOS discussion. However, we also welcomed their commitment to more engagement with the consumer credit industry. One of the issues that we are particularly keen to raise in our FOS discussion is their approach to Consumer Duty.

Commissions and disclosures

Published 18 January 2023

Following FCA’s extensive review of the motor finance market, the regulator moved to ban discretionary DiC commission arrangements and apply commission disclosure changes with effect from 28 January 2021. Accordingly, the rules around commissions and disclosures were updated in the FCA’s Consumer Credit Sourcebook (CONC), primarily in CONC 3 and CONC 4. Since then, however, the industry has seen a rise in claims and complaints concerning unfair and/or undisclosed commission arrangements. Motor finance lenders and brokers alike have reported increased claims in this regard, mainly via claims management companies (CMCs) and legal firms.

CCTA Inform: Winter 2022

Published 09 December 2022

CCTA Inform is an essential ‘easy read’ publication, exclusively available to members. This issue covers September 2022 to November 2022. During this period, we have collected details of legislation, regulatory updates and other announcements that may be of interest. Members should also ensure they are subscribed to our weekly CCTA Update email to be kept up to date with the latest industry news.

Year in Review: 2022

Published 01 December 2022

As we head toward the close of 2022, it has been a challenging year, yet the CCTA is pleased to have progressed several policy and advocacy initiatives that are important for our members. External forces, such as the continuing impact of Covid and the emergence of a cost-of-living crisis have made it a difficult environment for us all. Families across the UK have been under continuing financial pressure. Our members have responded positively, recognising the role that alternative credit can play but also acting to spot irresponsible borrowing.

Illegal money lending

Published 29 November 2022

Many CCTA members worry about the growth of illegal lending in the UK and have asked how they can help.  This workshop was created in partnership with the Illegal Money Lending Team (IMLT). The IMLT explained what we should be looking for and discussed the best way to refer suspected instances of illegal money lending to the team.

Meeting the October 2022 deadline

Published 25 October 2022

The FCA will be reviewing the implementation plans for a number of firms, how many, we do not know. We do know this an area of priority for the FCA and that teams have been established to take this forward. The CCTA has undertaken a series of activities to guide our members in the implementation of the Consumer Duty. We urge you to review the guidance paper that CCTA developed following the publication of the final policy statement.

Up in the air: When is it appropriate to lend to those with CCJs?

Published 24 October 2022

In the latest issue of CCTA Magazine, we asked Lex Jones of the Registry Trust to talk a little more about the importance of the work that they do on county court judgments (CCJs). The CCTA is a strong supporter of their Get Satisfaction campaign. It is vital to ensure judgments are kept up to date. When CCJs are satisfied it is important that there is a record. This should be a win-win for both the customer and lenders.

Changing track: What the new government means for the industry

Published 24 October 2022

Following Boris Johnson’s somewhat forced resignation in July, a new leadership contest for the Conservative Party took place over the summer. This meant a change of Prime Minister and a new Government.

CCTA Magazine: 2022 Issue Three

Published 13 October 2022

Welcome to the last edition of CCTA Magazine for 2022. Though we only find ourselves in October, I think few of us could have predicted what the last few months have brought including the death of the Queen, a new Prime Minister, and the cost-of-living crisis. There is certainly a lot for firms to think about as we head into the colder months.

Autumn 2022

Published 12 October 2022

The FCA gave a presentation on financial promtions. There was also an update from the CCTA team. Gain Credit, Addleshaw Goddard and Coeo also participated in a ‘Implementingn the Consumer Duty’ panel. To mark the last all-member event of the year, we also invited members to stay on for a celebratory drink.