FCA is consulting on proposals responding to the CMA report on high-cost short-term credit (HCSTC). It proposes additional standards for price comparison websites (PCWs) which compare HCSTC products. The proposals include requiring PCWs comparing HCSTC products to:
- rank products in ascending order of price according to the total amount payable and not give products greater prominence as a result of commercial relationships;
- ensure any additional advertising on PCWs for HCSTC is outside the ranking tables and not interspersed with it;
- enable consumers to search according to the amount and duration of loan that they require; and
- disclose on their website the extent of their market coverage by listing the number and names of the firms whose products they compare.
- The consultation also addresses a number of other areas:
- the use of real-time data sharing to enable informed credit assessments;
- measures to improve shopping around without affecting consumers’ credit ratings;
- improved disclosure on the costs of borrowing; and
- credit broking/lead generation.
Consultation closes on 28 January 2016. (Source: FCA Consults on Consumer Credit Proposals)