Although registration with the regulator is compulsory and regulations are already in place, one of the main concerns of the FCA is to ensure that these rules are kept up-to-date and as relevant as possible. The way that consumers behave changes, and firms offering financial services also change to reflect their customers’ needs. The FCA in turn also has to evolve to keep track of new industry developments.
Registered and regulated by the FCA, personalloansnow.co.uk is committed to following all of the regulator’s guidelines and prioritising the well-being of its borrowers. Their online application is both quick and easy.
Over the past few years, the industry regulator has concentrated on the high-cost credit market. In December 2018, they released their latest proposed changes in 2 key areas: overdrafts in retail banking and firms which offer ‘Buy Now, Pay Later’ schemes. They have asked for contributions from interested parties in the consultancy period up until March 2019, and then will release their findings and recommendations in June 2019.
The FCA is mainly concerned with transparency and fair treatment of customers and has long been critical of the way bank customers are charged for overdrafts, especially unauthorised ones. 2016 statistics show that 1.5% of customers paid 50% of the £2.4 billion in fees that these overdrafts incurred.
Since May, they have imposed new regulations about the way overdrafts are promoted, and how customers are informed. The existence of digital eligibility tools makes it easier for consumers to compare overdraft charges and to check if they could find a cheaper overdraft at a rival bank. The regulator also changed the way that an overdraft facility was presented as ‘available funds’ when customers checked their balance at an ATM.
Their latest recommendations are also designed to ensure that customers can make a well-informed decision about their overdraft and to make the fees clearer. They recommend that the charges shouldn’t be imposed as a daily and/or monthly charge, but should be given as an APR so customers could understand better and compare with other financial institutions. It has also been suggested that fixed charges and higher fees for unarranged overdrafts should be stopped while refused payment fees should be a fair reflection of how much extra work it caused the bank.
Another concern is that all banks and building societies should make more concerted efforts to identify customers showing signs of financial strain (because of a permanent overdraft) and try harder to help them get out of debt.
As far as ‘Buy Now, Pay Later’ schemes are concerned, one recommendation has been to put a stop to backdated interest charges for repayments made during the introductory term when the offer applies. The FCA predict that this change alone could save UK consumers £40-£60 million.