DEMSA Summary: CCA Reform, BoE Mortgage Payment Warning, and Collaborations

Summary – Subscribe and read the full update here (all the links & more)

In the latest update from DEMSA, several key topics in consumer finance and debt management are covered. These include the planned reform of the Consumer Credit Act (CCA), the Bank of England’s warning about rising mortgage payments, upcoming events and training sessions, collaborations with the Enforcement Conduct Board, and the development of an Economic Abuse Toolkit. The update also highlights debt statistics and emphasizes the importance of communication intelligibility in the financial industry.

Key Points

  • The government plans to reform the CCA and move its requirements into the FSMA model, with support for reducing prescriptive information requirements.
  • The Bank of England has issued a warning that mortgage payments will rise for nearly one million households by the end of 2026, affecting over 2 million households in total.
  • Several events and training sessions are mentioned, including webinars on the Consumer Duty and Intelligibility, an FCA webinar for debt advisers, and the upcoming MALG conference.
  • Collaborations with the Enforcement Conduct Board and industry collaboration efforts are highlighted.
  • Debt statistics from May 2023 indicate an increase in the number of people seeking debt advice and the common reasons for debt, such as the rising cost of living.
  • The Fairness Group has developed an Economic Abuse Toolkit to tackle economic abuse, with a focus on debt advisers and support for government agencies like HMRC.
  • The importance of communication intelligibility in the financial industry is emphasized, with an event exploring factors impacting intelligibility and strategies to enhance customer understanding.
See also  DEMSA Summary: Financial Crime / Council Tax collection / Debt advice / Cyber / AI / Collaborations / Events / Training

Key Statistics

  • Mortgage payments will rise by at least £500 a month for nearly one million households by the end of 2026, affecting over 2 million households in total.
  • The proportion of clients in receipt of Universal Credit has increased by 3% between April and May 2023, reaching 38%.

Key Takeaways

  1. The CCA is set to undergo reform, with a move towards the FSMA model and a focus on reducing prescriptive information requirements.
  2. The Bank of England’s warning about rising mortgage payments highlights potential financial difficulties for households in the coming years.
  3. Attending events and training sessions can provide valuable insights and updates in the consumer finance and debt management space.
  4. Collaborations with regulatory bodies and industry peers can contribute to better outcomes for consumers and improved compliance.
  5. Debt statistics show an increase in the number of people seeking advice, with the rising cost of living being a significant contributing factor.
  6. The development of an Economic Abuse Toolkit aims to address economic abuse and support vulnerable individuals in managing their debts.
  7. Communication intelligibility plays a crucial role in ensuring consumers understand financial information and make informed decisions.

Access the full update here (with all the links & more)

RO-AR insider newsletter

Receive notifications of new RO-AR content notifications: Also subscribe here - unsubscribe anytime