FCA Thematic Review of staff remuneration and incentives
The Financial Conduct Authority (FCA) has announced a Thematic Review of how consumer credit firms pay and incentivise their staff and manage the risks arising from these reward arrangements. It will cover a broad range of consumer credit sectors and firms where consumer credit is secondary to their main business. This work follows a number of previous publications on financial incentives such as TR14/4 on risks to customers from financial incentives of March 2014. The review work will take place during the remainder of 2015 and will report by Q2 2016. FCA, 12 August 2015
FCA Thematic Review of early arrears management in unsecured lending
The FCA has announced a Thematic Review on the ways in which unsecured consumer credit debts are collected, and the extent to which firms involved in the recovery and collection process are following FCA rules, treating customers fairly and showing appropriate forbearance. The review will build upon the FCA's previous review of arrears and forbearance in the area of high-cost short-term credit, by looking at arrears across various unsecured lending products (e.g. personal loans, credit cards and retail finance). The review work will take place during the remainder of 2015 with reporting due by Q2 2016 when the FCA will set out its findings and detail the action that firms should take. FCA, 12 August 2015
FLA publishes data on second-charge mortgage repossessions
The Finance & Leasing Association (FLA) has released data which shows that the number of second charge mortgage repossessions fell by 49.6% in Q2 2015, compared with the same period last year. FLA, 13 August 2015
CML publishes data on mortgage arrears and repossessions
The Council of Mortgage Lenders (CML) has published data showing that the repossession rate continued to fall in the second quarter of 2015. In that period, the rate was 0.02% - equivalent to just 1 in 5,000 mortgages. Arrears also continued to fall.
CML, 13 August 2015
House purchase lending rises 22% in June
The CML has reported a notable uptick in remortgage activity this month suggesting home owners are looking to lock into competitively-priced mortgage deals in advance of any rise in interest rates. Council for Mortgage Lenders, 11 August 2015
The EBA final Guidelines on passport notifications for mortgage credit intermediaries
The European Banking Authority (EBA) has published final guidelines on passport notifications for mortgage credit intermediaries in support of the transposition of the Mortgage Credit Directive (MCD). This follows a consultation exercise earlier this summer and the guidelines are intended to promote consistency in the exchange of information by national authorities about credit intermediaries carrying out cross-border EU business.
EBA, 11 August 2015
SHORT TERM HIGH COST CREDIT
CMA publishes Payday Lending Market Investigation Order 2015
The Competition and Markets Authority (CMA) has announced that it has made the Payday Lending Market Investigation Order 2015. The final order requires that online payday lenders publish details of their products on at least one price comparison website which is authorised by the FCA under its new rules. In addition, the order requires online and high street payday lenders to provide existing customers with a summary of their cost of borrowing. This measure forms part of a package of remedies intended to address the CMA's findings concerning an adverse effect on competition and where other steps to improve transparency have been taken by the FCA.
CMA, 13 August 2015