EVENT: The Future of High Cost Credit: Fintech and Other Stories
- Andrew Bailey (CEO, FCA), Which?, Sian Williams (Toynbee Hall)
- 9.00am-10.30am, Wednesday 2nd May, The Attlee Suite, Portcullis House
- To register please email firstname.lastname@example.org
It is now 4 years since the FCA took over regulation of the UK’s £200 bn consumer credit market, gaining responsibility for supervising 34,000 businesses. It has completed a credit card market study and proposed new rules to deal with persistent debt. In the high cost credit sector the FCA has capped the cost of payday loans and has identified key areas of concern in overdrafts, rent-to-own, home-collected credit and catalogue credit. It has also started a study of Personal Contract Purchase in the car finance market.
The Money Advice Service found that 8.3 million consumers are living with problem debt. People accessing debt advice are getting younger with renters particularly at risk of overindebtedness. The rise of the gig economy and income insecurity have increased the need for access to sustainable forms of consumer credit.
The PRA has said that risks to lenders from consumer credit remain elevated and noted issues in markets for 0% credit card deals and larger personal loans. Consumer groups have called for more effective affordability tests and for the FCA to expand its approach to price capping to other high cost credit markets.
Andrew Bailey, CEO of the FCA, has expressed concern that there is not currently a sustainable supply of credit available but that the regulator can’t bring this about on its own and that it needs Government involvement. He has indicated that the FCA will put the consumer credit market at the heart of its agenda this year. This raises a number of questions:
- What further work does the regulator have planned in the Consumer Credit market?
- Where are the key risks to consumers?
- Has the FCA done enough to tackle the key drivers of overindebtedness?
- Does the regulator require politicians to make decisions about the introduction of price caps in other sectors of the consumer credit market?
- How can fintech help improve the experience of high-cost credit for customers?
- What other actions can be taken by the FCA, Government and others to promote a sustainable supply of consumer credit?
At the event Andrew Bailey (CEO, FCA) will give a speech followed by reaction from a Panel including Which? and Sian Williams (Toynbee Hall).
Do join us for what we expect to be an insightful event. Please could you confirm your attendance by emailing email@example.com