What you need to know this week
- ICO fines two energy firms £550,000 for unlawful robo marketing calls.
- 64% of social media “debt advice” found misleading; 98% unreliable according to Lowell and Money Wellness study.
- FCA consults on £8.2bn motor finance compensation scheme affecting 14m consumers.
- FCA approves MaPS Standards to take effect 1 April 2026, supporting consistent debt advice quality.
- ICO consults on new “Recognised Legitimate Interest” guidance under the Data (Use and Access) Act 2025.
- DRCF launches new Thematic Innovation Hub focusing on agentic AI.
- Amplified Global calls for new approaches to measuring consumer understanding in regulatory reporting.
- GamCare launches national gambling harms campaign with Capgemini’s 23red agency.
- COVID repayment window open until December 2025 for voluntary repayment of pandemic funds.
- Most councils increase use of bailiffs; ECB consulting on new vulnerability and ability-to-pay standards.
- FCA PS24/3 Product Sales Data (PSD008/009) returns due November 2025; firms must reconcile DMP reporting.
- StepChange Connected event in Leeds on 16 October and MaPS AI & Innovation Forum webinar on 20 October 2025 announced.
Key Themes
Data Protection, AI and Regulation [link] [link] [link] [link]
ICO continues strict enforcement of PECR rules through major fines, highlighting risk in automated and unsolicited communication channels. Financial firms should review marketing compliance processes and call-handling automation. ICO’s consultation on “Recognised Legitimate Interest” aims to clarify lawful data use, crucial for customer data analytics and vulnerability identification. The ICO AI Policy and DRCF Thematic Innovation Hub demonstrate regulatory expectation for safe AI deployment—important for AI use in credit risk and collections analytics.
Misleading Financial Promotions on Social Media [link] [link] [link]
Research shows most online “debt advice” lacks credibility, posing consumer harm risks. FCA oversight on financial promotions, finfluencers and lead generation channels will intensify. Credit management and collections professionals must ensure any online outreach aligns with FCA PERG 17, especially when guiding customers toward advice or consolidation products.
Consumer Redress and Motor Finance Compensation [link] [link] [link] [link]
The proposed £8.2bn compensation scheme for motor finance commission mis-selling is one of the largest redress exercises since PPI. Firms must ensure robust complaint handling, data retention, and redress communication strategies. The FCA’s warnings to CMCs underline transparency and fairness expectations when managing contract terminations or charging fees.
Standards and Consumer Duty Alignment link
The newly approved MaPS Standards align with the FCA’s Consumer Duty and set benchmarks for advice quality and vulnerability management. They will serve as a reference for all advice providers, including non-MaPS-funded firms, reinforcing consistency in debt advice oversight and delivery.
Debt Reporting and Product Sales Data link
FCA PS24/3 introduces detailed Product Sales Data (PSD008/009) reporting obligations. Accurate credit agreement-level data is required by November 2025. Firms must reconcile DMP and CRA data to ensure reporting integrity. Failure to comply could impact regulatory standing and customer outcomes.
Economic and Digital Inclusion [link] [link]
UK Finance’s latest economic review confirms continued cost-of-living strain. DWP research reveals digital exclusion among benefit claimants, highlighting the need for multi-channel service provision in credit and collections operations. Accessibility considerations are critical for regulatory compliance and fair customer treatment.
Financial Vulnerability and Support Collaboration [link] [link] [link] [link]
Cross-sector cooperation between utilities, financial firms, and advice providers remains key to supporting vulnerable customers. Data sharing, unified vulnerability definitions, and targeted interventions such as social tariffs and auto-enrolment schemes are progressing. These partnerships underpin affordability and debt prevention efforts across sectors.
Measurement of Consumer Understanding [link] [link]
Amplified Global’s Multi-Level Comprehension Framework provides structured tools to measure real consumer understanding, addressing FCA’s expectations under Consumer Duty. Firms in credit and collections can adopt these methods to evidence fair treatment, particularly in vulnerable customer communication.
Gambling Harm and Financial Sector Intervention [link] [link]
GamCare and Capgemini’s campaign reinforces the financial sector’s role in detecting gambling harm. Banks and debt advisers can leverage transaction monitoring and open banking data to identify early signs of problem gambling, enabling earlier intervention and prevention of over-indebtedness.
Local Government Collections and Vulnerability [link] [link] [link]
Councils have increased bailiff use, prompting debate on fairness and modernisation. The ECB’s forthcoming standards on vulnerability and ability to pay are expected to reshape enforcement practices. Credit professionals and advisers should anticipate increased collaboration between local authorities and support networks like NSN.
COVID Repayment Scheme [link]
Government launches voluntary repayment window for pandemic loans and grants, open until December 2025. Financial institutions and insolvency professionals should be aware of potential customer impacts and repayment inquiries linked to previous COVID scheme misuse investigations.
Upcoming Events link
StepChange Connected event – 16 October 2025, Leeds.
MaPS Technology & Innovation Forum – 20 October 2025, online (1:30pm).
Both events focus on collaboration and AI’s role in transforming debt and advice services.
Key Statistics
- £550,000 – ICO fines imposed on two energy firms for unlawful marketing calls.
- 64.22% of social media “debt advice” misleading; 98.27% unreliable.
- 14m motor loans affected; £8.2bn potential redress; £700 average per agreement.
- 10.1m people in the UK over-indebted (FCA survey).
- 95% of interviewees have internet access, but only 39% of Pension Credit claimants can access online services unaided.
- Over 87% of CCJs remain unsatisfied; half are for amounts under £750.
- £10bn lost to pandemic fraud; £1.54bn recovered to date.
- 7m households not claiming entitled welfare benefits or grants.
- 27% of 11–17-year-olds spent their own money on gambling in the last year.
- 23.96% of online debt advice promotes specific products to vulnerable consumers.
Newsletter Contents
- ICO fines energy firms for unlawful robo calls.
- Lowell/Money Wellness expose misleading online debt advice.
- FCA outlines motor finance redress scheme consultation.
- FCA approves MaPS Standards to improve advice quality.
- ICO consults on “Recognised Legitimate Interest” guidance.
- ICO releases internal AI policy; DRCF launches agentic AI hub.
- Amplified Global advocates new measures for consumer understanding.
- GamCare launches campaign tackling gambling harms.
- COVID repayment window open until December 2025.
- Councils’ increased use of bailiffs prompts ECB vulnerability review.
- FCA PS24/3 Product Sales Data returns due; DMP data accuracy essential.
- Upcoming industry events: StepChange (Leeds, 16 Oct), MaPS Forum (Online, 20 Oct).
Find the full DEMSA newsletter, commentary and links here
#DEMSA
RO-AR insider newsletter
Receive notifications of new RO-AR content notifications: Also subscribe here - unsubscribe anytime
