REGULATORY FCA policy statement on consumer credit

The Financial Conduct Authority (FCA) has published a policy statement (PS15/23) following its consultation on consumer credit published in February 2015 (CP15/6), confirming final rules and guidance on credit broking, lending (including guarantor lending), financial promotions and debt. The FCA are going ahead with most of their proposals, but have modified some. Most changes come into force on 2 November 2015. However, those relating to COND, DISP, PERG, CONC 7.6 (continuous payment authorities) and CONC 8.3 (information and advice) apply from 28 September 2015. The FCA also discuss further planned work in relation to credit broking and guarantor lending. FCA, 28 September 2015

New FCA instruments

The Financial Conduct Authority (FCA) has published two new Handbook instruments, which were made by order of the FCA Board on 24 September 2015.

  • Fees (Alternative Dispute Resolution Competent Authority) (Financial Ombudsman Service) Instrument 2015 (FCA 2015/44). This concerns the amounts payable by the Financial Ombudsman Service to the FCA to fund the FCA's functions under the ADR Regulations.
  • Consumer Rights Act Instrument 2015 (FCA 2015/45). This takes effect on 1 October 2015 and amends the FCA Handbook and guides to reflect the provisions of the Consumer Rights Act 2015.

FCA, 25 September 2015

FOS ombudsman news - issue 128

The Financial Ombudsman Service (FOS) has published issue 128 of Ombudsman news which looks at complaints involving "sensitive details" being disclosed and those from younger people. FOS, 22 September 2015

UK

BBA figures for the high street banks – August 2015

The British Bankers Association has published August 2015 figures for high street banks, finding gross mortgage borrowing was 14% higher than a year ago. 

British Bankers Association, 24 September 2015

Over half say they will struggle when interest rates rise says BSA research

According to new research published by the Building Societies Association, over half of borrowers say they will struggle or fall behind with mortgage repayments when interest rates rise.

Building Societies Association, 24 September 2015

CML reports 16% annual fall in interest-only back book

The total number of interest-only loans outstanding has fallen by over a quarter over the last two years, according to the Council of Mortgage Lenders - with a 16% reduction in the number of loans over the past year. 

Council of Mortgage Lenders, 22 September 2015

EU

MCD Corrigendum published

As referred to in InCredit on 15 September 2015, a corrigendum to the text of the Mortgage Credit Directive (MCD) has now been published in the Official Journal. The corrigendum makes minor amendments to recital 26 and Annex II of the version of the MCD published in the OJ. It concerns passages relating to internationally recognised valuation standards and warnings to be given over interest rates.

European Commission, 23 September 2015

CASES

High value mortgage possession order

The High Court interpreted two loan agreements during possession proceedings which had been brought against a UK borrower by a Luxembourg credit institution which was in liquidation. The agreements were governed by Luxembourg law in respect of which the borrower was not entitled to raise a counterclaim and there was no right to set-off in relation to the debt. This decision illustrates the approach taken by the courts in a high value mortgage case dealing with the suspension of a possession order.

LBI HF v Stanford [2014] EWHC 3921