Loans news in 2022
20 stories, newest first.
- December 2022
FCA warns of loan fee fraud rise in the run up to Christmas
The Financial Conduct Authority has warned that loan fee fraud cases are up by a fifth on last year, as Christmas spending pressure and the cost of living crisis leave consumers exposed to upfront fee scams.
Second consultation on draft BNPL regulations expected by end of 2022
HM Treasury has said a second consultation on draft buy now pay later regulations and a draft regulatory impact assessment will be needed, with publication expected by the end of 2022.
- August 2022
FCA withdraws BNPL adverts emphasising benefits without disclosing risks
The Financial Conduct Authority used its powers in August 2022 to withdraw buy now pay later adverts that emphasised the products' benefits without sufficiently disclosing the relevant risks.
FPC withdraws affordability test Recommendation for mortgage lending
The Financial Policy Committee has withdrawn its affordability test Recommendation for mortgage lending from 1 August 2022, leaving the loan to income flow limit and the FCA's responsible lending rules in place.
Which? responds to HM Treasury consultation on BNPL regulation
Which? has told HM Treasury that buy now pay later regulation is moving too slowly, should cover merchant-provided credit and short term interest free credit, and must not be held up by the Consumer Credit Act review.
- June 2022
Financial Policy Committee confirms withdrawal of affordability stress test Recommendation
The Financial Policy Committee confirmed it will withdraw its mortgage affordability stress test Recommendation, with the change taking effect from 1 August 2022, following a consultation in February.
Government publishes response to BNPL regulation consultation
HM Treasury has published its response to the consultation on regulating buy now pay later, setting out a wider scope that includes short-term interest-free credit from third-party lenders, with further information requested by 1 August 2022.
UK Government sets out plans to regulate Buy-Now-Pay-Later
The Treasury set out plans on 20 June 2022 to bring buy now pay later lending under FCA regulation, with affordability checks, Ombudsman access and draft legislation due later in the year.
Government announces intention to reform the Consumer Credit Act
The government announced on 16 June 2022 that it intends to reform the Consumer Credit Act 1974, the law covering credit cards, personal loans and consumer hire agreements, with a first consultation to follow.
Government announces intention to reform the Consumer Credit Act 1974
HM Treasury has set out plans to move most of the Consumer Credit Act 1974 out of statute and into Financial Conduct Authority rules, opening a consultation that runs to 17 March 2023.
Government plans to regulate Buy Now Pay Later
The government plans to bring Buy Now Pay Later into regulation and overhaul consumer credit legislation, with Martin Lewis criticising the pace of the changes.
Klarna starts reporting BNPL borrowing to credit reference agencies
Klarna began reporting buy now pay later borrowing to credit reference agencies in June 2022, making some shoppers' deferred payments visible to lenders for the first time.
- May 2022
Consultation on affordability test withdrawal closes
The Bank of England's Financial Policy Committee consultation on withdrawing its mortgage affordability test Recommendation closed on 6 May 2022, with a decision and formal withdrawal expected within 12 months.
Retail instalment credit ownership rose among overdrawn adults while credit card and payday loan ownership fell
Among adults who were overdrawn in May 2022 or the previous year, ownership of retail instalment credit rose significantly between 2020 and 2022, while credit card and payday loan ownership fell.
- February 2022
FPC opens consultation on withdrawing affordability test Recommendation
The Bank of England's Financial Policy Committee is consulting on withdrawing its 2017 mortgage affordability test Recommendation, while keeping the loan to income flow limit in place.
FCA secures changes to unfair and unclear BNPL contract terms at four firms
The FCA has secured changes to potentially unfair and unclear contract terms at Clearpay, Klarna, Laybuy and Openpay, with three of the firms agreeing to refund some late payment fees.
Which? updates BNPL comparison table on Clearpay credit scores
Which? updated its buy now pay later comparison table on 2 February 2022 to state that Clearpay users' credit scores will not be affected if they miss a repayment.
Treasury announces plans to regulate BNPL providers
The Treasury has announced plans to regulate buy now pay later providers, with legislation promised as soon as parliamentary time allows, leaving the market unregulated until then.
- January 2022
Fair By Design publishes response to HM Treasury Buy Now Pay Later regulation consultation
Fair By Design has published its response to HM Treasury's consultation on regulating Buy Now Pay Later, setting out its views on how the deferred payment credit market should be overseen.
Regulation of Buy-Now Pay-Later consultation closes
HM Treasury's consultation on regulating buy now pay later closed on 6 January 2022, part of a process that began with the Woolard Review and is expected to lead to secondary legislation in mid-2023.