The first month of 2017 has passed in the blink of an eye, and we will soon be through February.
We have already seen the close of consultations from the Financial Conduct Authority on its Mission, and the Financial Ombudsman Service on its plans for 2017/18. We engaged with them both.
In our response to FOS, we picked up on members’ concerns about their approach to complaints, as well as the case cost paid even if the lender wins the case.
The consultation on the price cap for high-cost short-term credit and the question of whether it is possible to define some other products as high-cost credit will close this week. Over the last few weeks, we have attended numerous meetings with the FCA to listen to their analysis and also communicate our members’ views.
However our work doesn’t end with the close of the consultation, and we will stay engaged with the FCA team.
We will continue to push on a couple of issues. For example, the FCA seemed relatively relaxed about the number of people moving to borrow from “friends and family”. While that might sound like the “bank of mum and dad”, in reality, it can be a euphemism for illegal lenders. Or informal lending between those that can ill afford to carry the risk of loan defaults.
The BCCA is a strong supporter of the campaign to fight loan sharks. We are very concerned that we may see more people consider borrowing from loan sharks as it becomes more difficult to access legal credit.
If you want more information about the work of the campaign, then visit them: http://www.stoploansharks.co.uk/