View more on these topics

OFT launches irresponsible lending consultation

The OFT has launched a public consultation on the scope of its project looking at irresponsible lending in UK consumer credit markets.

The consultation follows major changes to the Consumer Credit Act, which include the identification of irresponsible lending as a matter to which the OFT must have regard when it considers businesses’ fitness to hold a consumer credit licence.

The OFT’s irresponsible lending project will involve wide consultation with business, consumer groups and other stakeholders. One of the key outcomes of the project is expected to be clear guidance on lending behaviours and practices which the OFT considers to be irresponsible.

The study will consider all forms of consumer credit lending which the OFT licences and all participants in the market, including lenders, brokers and other intermediaries.

The possible issues the review could consider include the advertising and marketing of products, selling techniques, product design, use of credit scoring techniques, appropriateness of products to borrowers, sale of associated products and management of consumers’ accounts including handling of defaults and arrears.

OFT director of consumer credit Ray Watson says: “Credit is an important part of everyday life so it is vitally important that consumers are safeguarded from irresponsible lending and that businesses have clarity about what this constitutes. The OFT looks forward to hearing from a wide range of businesses, consumers and representative bodies on these issues.”

Recommended

Platforms pose cost problem

Institute of Financial Planning chief executive Nick Cann has warned that advisers who move clients on to platforms without improving service could face the wrath of the FSA.

Wrap to take 60 percent of business

Nucleus chief executive David Ferguson predicts that over 60 per cent of life, pension and investment business will be transacted on platforms by 2012.

Nucleus mission

I first became convinced about the power of a wrap platform when Transact was demonstrated to me in 2000. It seemed to make sense that this would be how we could effectively manage our clients’ assets in future. The only question I had was whether clients would be prepared to pay for the privilege of wrapping up their investments.

Rayner Spencer Mills: Why we rate the Artemis Global Growth Fund

Ken Rayner and Graham O’Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio. The Artemis Global Growth Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com