Today, the Government reiterated its commitment to reform the Consumer Credit Act 1974 (CCA), following initial consultation with bodies including the BVRLA.
In publishing its response to the consultation, the Government confirmed it will be introducing provisions into the Financial Conduct Authority (FCA) Handbook. It is likely a further consultation will be published in 2024. It is important to note that there is still no clear indication of the Government’s position or a timeline for reform.
There was broad support from the majority of consultees for the government’s intention to fundamentally rethink the CCA, with many stakeholders agreeing that the CCA has failed to keep up with the rapid development of new products and the changing ways in which people engage with credit.
The consultation response contained differing views from stakeholders on how the government should seek to achieve this. The divergence of stakeholder views was based in the following key areas:
- FCA enforcement vs a ‘self-policing’ regime
- Prescription vs outcomes
- Legislation vs rules
- CCA Provisions
- Consumer Hire
CCA reform is still at the early stages. While BVRLA members can take some solace in the fact that the Government has specifically outlined its commitment to engaging with stakeholders who responded to the question of consumer hire, it’s clear that the next twelve months of engagement will be crucial in influencing the Treasury and FCA. BVRLA members can best ensure their voice is represented by completing the internal consultation on reforming the CCA, available by contacting [email protected].
See the response document: CCA consultation response (publishing.service.gov.uk).
