Consumer finance regulatory news, January 2021 # 2

Hogan Lovells

Hogan Lovells

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.


  • 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.

© Hogan Lovells | Attorney Advertising

Written by:

Hogan Lovells

Hogan Lovells on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.