The Finance and Leasing Association (FLA) recently expressed its opinion in favor of revamping the Consumer Credit Act (CCA). Credit Strategy reported that the FLA released recommendations outlining proposed improvements to the 45-year-old law.
According to the FLA, the incoming government needs to adapt to the changing times to enable more effective credit customer protection. This is because the Association believes that the current law is lacking when it comes to customer assurance and safety. Director general Stephen Haddrill said that the “government should reform the CCA urgently.”
The existing provisions of the CCA slow down the process that allows lenders to offer more time to make repayments for financially challenged customers. The 1974 law also requires lending entities to issue “old fashioned” and harsh notices to customers that are having difficulty making repayments.
The Association noted that the Act also does not consider innovations when it comes to the motor finances industry, especially in light of the emergence of low emission cars. It also makes the process of financing a car “unnecessary complex.”
Aside from the reproaches pointed out by the FLA, the Association also pointed out the need to establish an accessible source of information dedicated to small business financing. Haddrill remarked that “remedying this would be a great step to improving UK productivity.”
Back in March, the Financial Conduct Authority (FCA) released a review of the CCA in which it outlined the provisions that “could be replaced by FCA rules or guidances under the Financial Services and Markets Act 2000 (FSMA).” The review came as part of the presentation of amendments to the FSMA.
The upcoming elections will be held on December 12, 2019. Should the new government pick up recommendations from the FLA and other concerned parties, the prospect of amendments will come in time for the New Year.