HM Treasury (HMT) is looking to reform the Consumer Credit Act (CCA), the biggest change to the legislation since it was introduced in 1974. The review will aim to facilitate innovation in the credit sector and facilitate accessibility of credit products.
The review will achieve this by determining what falls within the scope of regulation and the rules that apply. The BVRLA recently responded to an initial consultation from HMT that specifically asked about the alignment of consumer credit and consumer hire rules. The consultation process will be lengthy and it is expected that HMT and the Financial Conduct Authority (FCA) will look in more detail at the key elements of regulatory structure.
The BVRLA Policy team is engaging with HMT and the FCA on the reform, recent meetings with both organisations have shown that HMT is relying on the FCA’s expertise to complete this process and that the FCA is particularly evidence/data focused.
Therefore, the BVRLA needs a strong level of evidence and insight from its members to collaborate closely with the FCA, as well as strengthen its positioning on key topics. To achieve this, the association is currently drafting an internal consultation for members which will mainly focus on the following areas:
- PCP vs PCH
- Subscriptions
- Business Lending.
Those who wish to be involved should contact the policy inbox: [email protected]. The BVRLA consultation will be published on 19 June, if you have any further queries or would like to discuss the topic areas in the meantime, contact [email protected].
