Press office

News and views on the home credit industry from the CCA and its members

News for Members

18 April 2017

FCA Publishes Mission, Business Plan & Sector Views

The FCA has published its Mission to provide consumers and firms with greater clarity about how it prioritises its interventions in financial markets.  

It has also published its Business Plan, Fees Consultation and for the first time, its Sector Views which highlight the issues and developments that the FCA has identified in the sectors which it regulates, including the HCST and home-collected credit markets.

A number of cross-sector priorities are outlined in the Business Plan but we have summarised below the section which relates to the FCA's continuing work in the high-cost credit sector:

We will continue to focus on high cost credit as it is a high-risk area that affects vulnerable consumers. 

In November 2016 we issued a Call for Input, covering high cost products, overdrafts, the high cost short-term credit (HCSTC) price cap, and repeat and multiple HCSTC borrowing. 

We will look at all high-cost products to build a full picture of how these are used, whether they cause harm and, if so, to which consumers.  We will then be able to decide if we need to intervene further. We will also review the overdraft market in detail following the CMA’s review, which identified problems in the market. 

We will also review the price cap on HCSTC loans which came into force in January 2015. We will look for evidence on whether the cap should be changed, and the impact on consumers excluded from HCSTC because of the price cap. We will publish our findings on the review of the payday cap in the summer of 2017.

To view all of the documents in full, visit the FCA's website.  The contents of a speech by Andrew Bailey, Chief Executive of the FCA, explaining why these documents have been published is also available to view at this link

CCA News

CCA News - January 2015 cover

Our quarterly magazine, CCA News, keeps our members up to date with all the latest news and issues affecting the home credit industry.

Download CCA News