HM Treasury yesterday (19 May) published a consultation about reforming the Consumer Credit Act (CCA).
Reforming the CCA will set out the rules around which products will be regulated and how. The BVRLA will be reaching out the Compliance and Regulation Working Group for input.
The Government intends to take a phased approach to consulting on the reform. Specifically, it intends to outline its detailed proposals for a new regime across two consultations:
- Phase 1: This consultation outlines the Government’s overall vision for a reformed regime, as well as its approach to information requirements, sanctions, and criminal offences.
- Phase 2: A further consultation will follow which will set out how the Government intends to reform the scope of regulation and rights and protections under the CCA.
There is substantial overlap between Phase 1 and 2 so it is the Government’s aim that both phases of the policy work are carried out prior to implementation of changes.
Phase 2 will establish key concepts within the CCA (such as defining different types of credit agreement) and the perimeter of regulation. Policy work is required on the scope of the regulated credit regime in particular on consumer hire and business lending to sole traders and small partnerships. Decisions will need to be made on whether and how they should be regulated.
Although the Phase 2 is more directly relevant to members, it is important that the association responds to the current consultation because it includes questions around initial thoughts on issues to be considered in Phase 2.
The Phase 1 consultation closes on 21 July.
If you would like to be involved in the consultation response, email [email protected] before the end of this week (23 May).
This Compliance and Regulation Working Group is open to all members, also contact [email protected] if you would like to join.
Consultation on Consumer Credit Act 1974 (CCA) Reform - GOV.UK
