The UK consumer credit market encompasses a wide range of business models. It is subject to an equally wide-ranging body of regulations designed to protect consumers. Navigating this regulatory landscape can prove tricky. Not least because of the sheer number of rules, regulations, exclusions and exemptions affecting regulated firms and those who operate on the fringes of consumer credit regulation.
Our FCA authorisation application service covers:
The FCA is also concerned with the quality of credit lending firms’ underwriting policies – and their ability to manage debt appropriately following drawdown. If you rely on an algorithm to some extent to help you do this, it’s essential you have appropriate systems, controls and governance in place around its operation. Adopting, and being able to evidence, a top-down culture of treating customers fairly will be fundamentally important.
Credit lenders operate under several different licences including:
The UK credit market has been through a number of changes over the past few years, It is vital that firms ensure they consider the vulnerabilities this will create within their credit and debt management policies and procedures – and within their wider policies, procedures and governance structures. Adopting, and being able to evidence, a top-down culture of treating customers fairly will be fundamentally important in the aftermath of the coronavirus pandemic. The FCA is also concerned with the quality of credit lending firms’ underwriting policies – and their ability to manage debt appropriately following drawdown. If you rely on an algorithm to some extent to help you do this, it’s essential you have appropriate systems, controls and governance in place around its operation. Our experts can apply their extensive credit knowledge to identify any gaps or potential areas of regulatory concern.
The UK consumer credit market encompasses a wide range of business models. It is subject to an equally wide-ranging body of regulations designed to protect consumers. Navigating this regulatory landscape can prove tricky. Not least because of the sheer number of rules, regulations, exclusions and exemptions affecting regulated firms and those who operate on the fringes of consumer credit regulation.
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