Consumer finance regulatory news, January 2021 # 2

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Recent regulatory developments of interest to financial institutions with focus on consumer finance. This week reports on the UK FCA portfolio letter to debt firms. See also our Related Materials links for updates with broader application.

Contents

  • Debt firms: FCA portfolio letter

Debt firms: FCA portfolio letter

The UK Financial Conduct Authority (FCA) has published a portfolio letter it has sent to debt purchasers, debt collectors and debt administrators (collectively debt firms) setting out the key risks that debt firms may pose to consumers or the markets in which they operate. The FCA also outlines the FCA's expectations of these firms, including how they should mitigate the key risks. The FCA also describes the its supervisory strategy and programme of work to ensure that firms are meeting its expectations and harms are being remedied.

The FCA's letter looks at the following three themes under which there may be risks and the FCA's expectations of firms in this regard:

  • customer treatment;
  • litigation and unenforceable debt; and
  • firms' prudential resources.
  • The FCA expects debt firms to reflect on the issues highlighted in the letter to challenge how they operate to minimise any consumer harm they may cause.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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