This consultation invites our proposals for the regulation of consumer credit activities implemented by persons and companies licensed by the SRA in accordance with Part 20 of the Financial Services and Markets Act 2000 (FSMA). In summary, following the amendments that came into force on April 1, 2014, the FSMA requires that certain consumer credit activities be regulated. These activities include credit intermediation, debt adjustment and debtor counselling 1. From that date, the regulation of consumer credit activities was transferred from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA). In accordance with Part 20, members of a Designated Professional Body (PBO), such as. B companies approved by the SRA, are exempt from the requirement to be approved by the FCA to carry out activities regulated by the FSMA. It is proposed that restrictions apply to businesses that carry out licensed consumer credit activities. These restrictions prevent businesses: If you lent £200 for a year to a front-door lender, you`d be paying a lot more than if you had borrowed on a credit card that charges an above-average rate of 38%. After the conclusion of a regulated credit agreement under which a company is the lender, if the parties agree to change the total amount of credit, the company must update the financial information that the company holds about the customer and assess the creditworthiness of the customer before the total amount of credit is significantly increased. We have achieved this: first, the exclusion of ”contentious transactions” in the Financial Services and Markets Act 2000 (Regulated Activities) Order (RAO) by the Financial Services and Markets Act 2000 (Miscellaneous Commissions) Order 2015 (SI 2015/853), adopted on 24 The Commission adopted Council Regulation (EC) No 1005/2015 of 27 March 2015 concerning work that was undertaken before the publication of and/or in the recital of a proceeding. This will allow certain consumer credit activities, such as collection, to be excluded from FSMA regulations if these activities are carried out by lawyers (or other persons authorised under the Legal Services Act 2007) in connection with the provision of advocacy or procedural services. That is why we are proposing to amend the Scope Rules to prohibit persons we regulate from engaging in the following consumer credit activities, in accordance with Part 20: For more information on regulated activities, see the practice note: What are regulated activities?.

Be sure to look around before signing an agreement. The Financial Services and Markets Act 2000 (FSMA 2000) regulates consumer credit agreements. .