KEY THEMES+ ¦ DEMSA Summary

What you need to know this week

Consumer Duty Board reports must be signed off by the end of next week.
UK government borrowing in June 2025 reached £20.7bn – £6.6bn higher than June 2024.
Car and van production is at its lowest level since 1953, excluding the Covid period.
The FCA released a comprehensive update on the retail insurance market, including claims handling, motor premiums, and premium finance.
Rachel Reeves is considering retrospective legislation over a potential £44bn car finance Supreme Court ruling.
PayPlan is currently engaging with 3,500 people per week and supporting over 87,000 consumers.
51% of UK adults now use social media to access news, with Facebook being the most used platform.
The FCA reaffirmed its economic crime priorities, with recent actions against Monzon and Barclays.
The FCA’s July Consumer Network meeting focused on redress, BNPL, mortgage rules, and Consumer Duty updates.
Ofwat may be abolished following an independent review recommending restructuring of the water sector.
Santander UK has gone live with new Debt Manager software from C&R Software.
CSA Conference is scheduled for 11 September 2025 and FourNet’s compliance event on 17 September 2025 in Manchester.

Key Themes

Consumer Duty and Fair Value

Ongoing regulatory requirements under the Consumer Duty framework are driving scrutiny of board-level oversight and vulnerability practices. The upcoming deadline for board report approvals reinforces the Duty’s operational and cultural expectations. Discussion at the FCA July Consumer Network Meeting and a report by James Edmonds challenge firms to provide structured, human-centred support to vulnerable customers. The FCA’s supervisory focus has intensified following the FG21/1 review.

Retail Insurance Market Oversight

The FCA’s [Retail Insurance Market Update]
https://www.fca.org.uk/publications/corporate-documents/roadmap-retail-insurance
https://www.fca.org.uk/news/press-releases/premium-hikes-driven-claims-costs-insurers-told-improve-claims-handling
presents findings on rising premiums, largely driven by external cost pressures. The report sets expectations around claims handling in home and travel insurance and includes an interim premium finance market study update. This matters for firms navigating affordability pressures and product compliance requirements.

Car Finance Ruling and Legislative Response

A £44bn redress risk is emerging following a Supreme Court ruling on discretionary commissions in motor finance. Rachel Reeves’ comments signal possible retrospective legislation. A blog by Amplifi outlines broader implications for financial transparency, regulatory reform, and communication clarity—key concerns for regulated firms and their distributors.

Financial Crime

Recent FCA actions against Barclays and Monzon align with a broader commitment to the UK’s nine economic crime priorities. The FCA and NCA are focusing on fraud, money mules, and cross-border laundering, reinforcing expectations for firms to deploy effective monitoring and controls. FCA hub, UK Finance blog

Debt Advice Sector Performance

PayPlan’s webinar showcased customer engagement volumes and challenges related to delayed advice-seeking. This insight is critical for firms measuring customer needs, supporting Duty compliance, and benchmarking against sector performance. The integration of the MorganAsh Resilience System (MARS) with VRS signals a maturing tech-led approach to vulnerability management.

Media Consumption and Trust

Ofcom research reveals a shift to online news consumption (51% via social media), with implications for customer communications and engagement strategies. Platforms must balance accessibility with accuracy, particularly in regulated financial services environments.

Regulatory Collaboration and CIMS

The Consumer Network meeting included updates on the Advice Guidance Boundary Review, mortgage rules, and progress on the Credit Information Market Study (CIMS). The FCA acknowledged sector concerns regarding Fair Value Assessments across similar product types and the paused CONC 8 review. These developments are crucial for firms offering credit and support products.

Water Sector Reform

The Independent Water Commission proposes scrapping Ofwat and overhauling pricing frameworks. The [CCW Blog]
https://www.ccw.org.uk/news/ccw-reflects-on-water-companies-final-vulnerability-strategies/
https://www.ccw.org.uk/news/ccw-welcomes-improved-service-standards-for-water-customers/
and government report highlight mixed progress on vulnerability strategy implementation. This reform could influence approaches to affordability, data sharing and social tariff alignment across utility sectors.

Industry Collaboration

Multiple examples demonstrate evolving cross-sector collaboration:

National Grid x NSN: Integrated referral platforms for support.
Santander UK: Now live with new debt management systems.
Advantis x DebtStream: Joint focus on customer experience.

Events and Sector Insight

CSA Conference: 11 September 2025 – UKCCC event covering redress and regulation. Link
FourNet Compliance Event: 17 September 2025 – Manchester – focus on regulatory design. Link

Key Statistics

£20.7bn – UK borrowing in June 2025, £6.6bn higher than June 2024
87,000+ – consumers supported by PayPlan in debt remedies
3,500 – weekly engagements by PayPlan
51% – UK adults using social media for news consumption
30% – forecast rise in water bills over next 5 years
45% – fall in van production H1 2025
7.3% – decline in car production H1 2025
1953 – lowest comparative point for UK car and van production, excluding Covid

Newsletter Contents

FCA’s July Consumer Network Meeting summary
Amplifi’s blog on motor finance ruling and regulatory implications
Car finance scandal and possible retrospective legislation
FCA’s update on retail insurance market performance and reforms
PayPlan’s current engagement and vulnerability management approach
James Edmonds report on vulnerability across customer base
FCA financial crime priorities and sector responsibilities
CONC 8 review pause and Fair Value Assessment challenges
Ofwat’s future and water sector vulnerability strategies
National Grid and NSN collaboration on support referrals
Santander and Advantis system implementation updates
Upcoming events: CSA (11 Sept), FourNet (17 Sept)