DEMSA Key themes

KEY THEMES+ ¦ DEMSA Newsletter

What you need to know this week BNPL Usage and Data Access: 33% of UK consumers have used BNPL products, with CRAs like Experian and Valid8 IP offering API data blocks.FCA "Dear CEO" Letter: Addressed to regulated firms about closed products, urging debt buyers to consider implications.Vulnerability Surveys: Firms that completed surveys by 14 May will find content on financial vulnerability and consumer duty relevant.Reshaping Energy Sector Role: Discussions focus on problem debt in the energy sector with proposals for… Read more

KEY THEMES+ ¦ DEMSA Newsletter

What you need to know this week The Bank of England maintains interest rates at 5.25%.Inflation is projected to decrease to 2% in the upcoming months.New polling shows a significant percentage of mortgage holders have turned to additional credit to manage their expenses.UK Finance reports a 3% increase in mortgage arrears in Q1 2024.The ECB has published its final business plan for 2024-25.FCA highlights practices for ARs acting as credit brokers under a Principal firm.Consumer Duty regulations focus on identifying… Read more

KEY THEMES+ ¦ DEMSA Newsletter

Regulatory Review and Data-Driven Compliance FCA's Two-Stage Review Process: The Financial Conduct Authority (FCA) has launched a two-stage review to assess how firms treat vulnerable customers, beginning with a wide-reaching questionnaire in Stage 1, followed by a more detailed Stage 2 for selected firms based on their initial responses. This method allows the FCA to effectively identify areas of concern and ensure firms prioritize consumer protection. FCA InvestigationImpact of Data Requests on Large Debt Solution Providers: Recent confirmations of data… Read more

KEY THEMES+ ¦ DEMSA Newsletter

Financial Strain Among Employed Debtors Growing Debts Despite Employment: The StepChange report, "In work but still in debt," reveals that 21% of their clients in full-time employment cannot cover their expenses even after receiving debt advice. This rising trend indicates a significant challenge within the financial services sector to address the needs of working individuals who are still financially vulnerable. This is crucial for credit management professionals to understand, as it affects the sustainability of debt solutions and client retention… Read more

Newsletter Key Themes ¦ Industry and Regulatory Developments – DEMSA

Find the full DEMSA newsletter and commentary here Regulatory Updates and Compliance FCA's New BiFD Policy Rules (PS24/2): The recent blog by Adam Butler at StepChange discusses the implications of the FCA’s new BiFD policy rules (PS24/2), highlighting significant changes that affect borrower support and lending practices. This is crucial for financial services professionals as it influences how firms will need to adapt their policies to comply with new regulatory standards. Read moreReview of Persistent Debt Rules: The FCA's announcement… Read more

Newsletter Key Themes ¦ Industry and Regulatory Developments – DEMSA

Find the full DEMSA newsletter and commentary here Regulatory Updates and Compliance PS24/2 – Policy Rules from CP23/13 (BiFD): The new policy rules under PS24/2, effective from November 2024, are designed to enhance protections for borrowers in financial difficulty. This is critical for financial service providers to understand as it will affect debt recovery practices and require adaptations in how firms engage with vulnerable consumers. FCA Policy StatementSUP15 and FIN073 Reporting: The updates on reporting requirements underscore the importance of… Read more