Are you breaching the new rules for FCA Regulated firms?

legal_updates

The first new rule came in on 2 January 2015 when the FCA introduced a ban on credit brokers charging a fee to customers.

Author: Nona Bowkis
Published:
Reading time: 2 minutes

This article is 6 years old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

January and July this year saw two new rules to which any dealer who has a credit licence will need to adhere.  

The first new rule came in on 2 January 2015 when the FCA introduced a ban on credit brokers charging a fee to customers who had not been given certain information as required under CONC (Consumer Credit sourcebook) 4.4.3R. Dealers should ensure they provide any customer with an Information Notice with all the required information and ensure that the customer signs the Notice so there can be no argument that the customer was unaware of the fee. See CONC 4.4 for more information:

https://www.handbook.fca.org.uk/handbook/CONC/4/4.html

The second rule came in on 9 July 2015 and is part of the new Alternative Dispute Resolution (ADR) Rules. As you will be aware from a previous update (The new Alternative Dispute Resolutions (ADR) Rules) the introduction of ADR rules for consumer issues was put back until 1 October 2015 (same day as the new Consumer Rights Act comes into force). However, if you are FCA regulated either as a broker or a lender, you must comply with the new DISP (Dispute Resolution: Complaints sourcebook) Rules and among other things, have the Financial Ombudsman Service (FOS) website linked on your site so that customers know they can complain to them in regard to your brokering or lending activities. See DISP 1.2 for more information:

https://www.handbook.fca.org.uk/handbook/DISP/1/2.html

Nona Bowkis

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.