DEMSA Key themes summary

What you need to know this week UK card transactions surpassed £1 trillion in 2024, with an increase in both the number of transactions and cards issued. The FCA outlined a 5-year strategic focus including smarter regulation, economic growth support, enhanced consumer navigation in financial decisions, and intensified efforts against financial crime. Consumer Duty rules have been fully implemented, prompting quick regulatory changes to reduce costs and support consumer outcomes. The Spring Statement 2025 highlighted a bleak outlook for UK… Read more

What You Need to Know This Week Bank of England's Monetary Policy Committee maintained the Bank Rate at 4.5%. UK government borrowing was higher than anticipated in February, adding fiscal pressure before the Spring Statement. Significant rise in debit and credit card transactions in December 2024, indicating increased consumer spending. The government plans major welfare benefit changes to reduce expenditure, including ending reassessments for those with severe, long-term conditions. Colin Trend's profile highlights his 30-year experience in financial difficulty service… Read more

What You Need to Know This Week UK GDP contracted by 0.1% in January 2025, reversing expectations of 0.1% growth. The manufacturing sector saw a decline, while consumer-facing services grew by 0.1%. FCA is consulting on future contactless payment limits, closing 9 May 2025. The Payment Systems Regulator (PSR) is being abolished, with responsibilities shifting to the FCA. FCA published an update on the motor finance review, with potential redress schemes for affected consumers. FCA findings highlight insufficient consumer support… Read more

What you need to know this week Chancellor’s planned welfare cuts expected to impact consumer confidence and financial resilience. FCA releases report on their vulnerability guidance (FG21/1), highlighting governance focus on outsourcing. StepChange’s 2024 Impact Report examines financial vulnerability among women and coerced debt cases. Insolvency Service publishes IVA outcomes and provider data for 2024, with notable trends in termination rates and market concentration. Ofcom updates Call Line Identification (CLI) guidance to combat scam calls, effective 29 January 2025. FCA… Read more

What You Need to Know This Week FCA removes the requirement for a Consumer Duty Board Champion. Ofgem announces a 6% increase in the energy price cap to £1,849 from 1 April 2025. TransUnion research shows 20% of UK adults identify as financially vulnerable. FCA to hold a vulnerability webinar on 11 March 2025. Encore Capital Group shut down following an Insolvency Service investigation. FCA finds 83% of financial advisers are delivering suitability reviews. Desmond Hudson appointed as new CSA… Read more

What you need to know this week FCA email deletion policy clarified: regulatory records retained for 25 years. ECB consultation on 2025/26 business plan, responses due by 12 March. Affordability assessments under Consumer Duty under review post-PS24/2. Personal insolvency figures for January 2025 show a 12% year-on-year increase. Second-charge mortgage market grew by 16% in December 2024. Lloyds sets aside £1.2bn for motor finance commission claims. Ofgem addresses concerns over back billing and energy debt. Rising operating costs impact Fair… Read more