ROAR Insights

INSIGHTS ¦ PS24/3 Consumer Credit – Product Sales Data Reporting

FCA Summary The policy statement PS24/3 outlines new regulations for consumer credit firms regarding Product Sales Data (PSD) reporting. These regulations are aimed at improving the supervision and monitoring of the consumer credit market by the Financial Conduct Authority (FCA), enhancing data collection, and thus preventing harm to consumers. Key Points The FCA is introducing three new PSD returns: Sales PSD, Performance PSD, and Back book PSD.The new rules will affect firms engaged in consumer credit lending and those providing… Read more

INSIGHTS ¦ Commercial Variable Recurring Payments

UK Finance Summary This report discusses the implementation and governance of Commercial Variable Recurring Payments (cVRP) in the UK, focusing on model clauses that could potentially form a part of multi-lateral or bi-lateral contracts. It examines various aspects of the cVRP system, including payer protections, risk management, and the regulatory framework, aiming to foster a robust, efficient, and secure environment for these types of payments. Key Points Definition and Scope: cVRPs are an evolution of the payment industry, leveraging open… Read more

INSIGHTS ¦ StepChange Statistics Yearbook

StepChange Summary The StepChange Statistics Yearbook 2023 provides an insightful overview of the current state of personal debt in the UK, documenting the challenges faced by individuals seeking debt advice. The report highlights the significant impact of the cost of living increase on debt levels and explores the changing demographic and financial characteristics of new clients who sought advice in 2023. Key Points A total of 183,403 new clients completed their first full debt advice session in 2023.The cost of… Read more

INSIGHTS ¦ PS24/2 Strengthening protections for borrowers in financial difficulty: Consumer credit and mortgages

FCA Summary The policy statement PS24/2 issued in April 2024 by the UK Financial Conduct Authority (FCA) addresses the augmentation of protections for borrowers experiencing financial hardships. It elaborates on feedback from previous consultations and finalizes rules designed to help those with consumer credit, mortgages, and overdrafts. Key Points The FCA has finalized rules integrating aspects of the coronavirus Tailored Support Guidance into the FCA Handbook, enhancing protections for borrowers in financial difficulty.These rules are primarily aimed at a wide… Read more

INSIGHTS ¦ FCA portfolio letter for consumer lending

FCA Summary The Financial Conduct Authority (FCA) has issued a strategic letter to Consumer Lending firms, emphasizing the need for a thriving, innovative, and safe Consumer Lending market. The letter outlines the current state of the market, key risks, and the FCA’s priorities for improving consumer access to affordable credit and ensuring that lending practices are responsible and fair. It specifically addresses high-cost lending, mainstream consumer credit, and credit unions. Key Points Consumer Lending Market Importance: The Consumer Lending market… Read more

INSIGHTS ¦ A new way to view the UK consumer credit market

Oplo Whitepaper Summary This document outlines the profound shifts within the UK consumer credit market, identifying an emergent category called “The New Mainstream.” This category encapsulates a significant portion of British consumers who no longer fit traditional prime or near-prime classifications due to evolving credit behaviours and economic conditions. The report, prepared by Oplo in July 2021, challenges outdated segmentation models and calls for a more dynamic approach to consumer credit, advocating for a focus on consumer potential rather than… Read more