The Financial Conduct Authority (FCA) has outlined plans to implement and review the consumer credit regime and the firms and practices within the sector in its business plan for 2015/16.
The regulator noted that in the past year it had identified a number of risks common across the consumer credit sector. One risk it specifically highlighted was the potential harm poor practise when assessing affordability could cause consumers.
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The FCA said: "We will be undertaking work to gain a deeper understanding of a wide range of issues, including how firms assess affordability, which will help us to take steps to mitigate the risks we find."
This will in particular look at issues around multiple and repeat borrowing.
The FCA said it will then issue a consultation on changes to the rules on creditworthiness at an unspecified time later in 2015.
It will consult on cold-calling and the use of quotation searches, which the FCA believes would enable consumers to shop around for credit without their credit record becoming unduly impaired.
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By GlobalDataEncouragingly, the body said it was particularly mindful of the potential unintended consequences that may flow from its interventions. It said: "We will continue to monitor the impact of our interventions and consider the potential consequences. We may also need to be flexible and to adjust our approach if there is an unforeseen impact."
More generally, the FCA said it will be looking at individual accountability, and remuneration.
