REGULATORY

FCA call for input on terms and definitions under PAD

The Financial Conduct Authority has published a call for input regarding terms and definitions for services which are linked to payment accounts and subject to fees. The Payment Accounts Directive (PAD) will require all providers of payment accounts to use standardised terminology in marketing, pre-contractual and contractual information provided to consumers for payment accounts within the scope of the PAD. The proposed terms and definitions in the document include, "arranged overdrafts" and "unplanned overdrafts" as well as "allowing a payment despite a lack o f funds." The closing date for comments is 17 July 2015.

Financial Conduct Authority, 17 June 2015

FCA call for input on regulatory barriers to innovation in digital and mobile solutions

The Financial Conduct Authority has published a call for input on regulatory barriers to innovation in digital and mobile solutions. This initiative is closely related to the FCA's "Project Innovate" and its "Innovation Hub" to provide support for "innovative" firms. The questions in the document seek information and examples of specific rules or policies that cause barriers to innovation and, whether there are any rules or policies that should be introduced to facilitate innovation. The closing date for comments is 7 September 2015.

Financial Conduct Authority, 17 June 2015

UK

BBA research finds customers are in touch with their banks more than ever 

New research by CACI for the BBA, finds that people are now in touch with their bank more than ever before. The driving force is said to be the increasing use of digital banking. 
British Bankers' Association, 18 June 2015

Monthly house purchase lending weaker down on April last year

Lending in April was down around 10% on the same period last year. With respect to affordability measures, capital and interest payments as a percentage of income have decreased since 2014.

Council of Mortgage Lenders, 16 June 2015

CASES

Contractual right to vary the interest rate for buy-to-let loan

In January 2015, the High Court gave judgment in a representative action over a lender's contractual right to vary the interest rate payable by a buy-to-let borrower and to terminate a "buy-to-let" mortgage on notice. On a question of construction touching on whether there was inconsistency between the Offer and the Mortgage Conditions, the lender successful argued that they were not limited to track the Bank of England base rate. The borrower has now been granted permission to appeal to the Court of Appeal.

Property 118 Action Group v West Bromwich Mortgage Company Ltd [2015] EWHC 135 (Comm)