DEMSA Summary: BiFD / Personal Insolvency / DRO hub / Credit Union event / IMLT / Collaborations / Training / Events

Summary – Read the full update here (including all the links & more)

This weeks update discusses topics related to consumer debt and financial well-being, covering areas such as the impact of inflation, energy provider communications, regulatory developments, and upcoming events. It also introduces training initiatives related to the Consumer Duty and vulnerability management, emphasising the importance of data reporting, analysis in monitoring consumer credit markets and ensuring compliance with regulations.

Key Points

  1. Inflation in the UK remained at 6.7% in the 12 months to September 2023, affecting private renters who are struggling with record-high rents.
  2. Ofgem is taking measures to protect energy consumers from rising debt, including requiring energy firms to contact customers who miss payments and publish customer service ratings.
  3. The Financial Conduct Authority (FCA) is proposing the introduction of Product Sales Data (PSD) returns to gather detailed information about consumer credit products, aiding compliance with the Consumer Duty.
  4. The document highlights upcoming events such as Stop Loan Sharks week, the MALG conference, Credit & Collections Technology Think Tank, and the IPA conference.
  5. Vulnerability training aligned with the Consumer Duty is being offered, emphasizing mental health and alignment with emerging toolkits and frameworks.
  6. Recorded Consumer Duty training material is available for senior management and managers in regulated firms.

Key Statistics

  1. Inflation rate in the UK remained at 6.7% in the 12 months to September 2023.
  2. Private rental prices in the UK rose by 5.7% in the 12 months to September 2023.
  3. Approximately 3% of the UK population has joined a credit union.
  4. England & Wales are responsible for 96% of total judgment data.
  5. The UK consumer credit market comprises approximately 120 million consumer credit agreements, over 40 million consumers, and over £200 billion in outstanding balances.
See also  DEMSA Summary: IVA statistics / DRO guidance / Enforcement consultation / Collaboration / Training /Events

Key Takeaways

  • Inflation continues to impact private renters, necessitating government action on rent reform.
  • Ofgem is enforcing rules to improve energy providers’ customer service and support for those in arrears.
  • The FCA’s proposed PSD returns aim to provide granular data for monitoring compliance with the Consumer Duty.
  • Several upcoming events focus on debt, financial well-being, and technological advancements in the sector.
  • Vulnerability training plays a crucial role in ensuring firms meet regulatory obligations and address consumer needs effectively.
  • The Consumer Duty training material offers valuable insights for senior management in regulated firms.

Access all the updates here

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