Loans news in 2024
16 stories, newest first.
- December 2024
FCA introduces modified complaint handling rules for motor finance commission complaints
The FCA has added rules to its complaints rulebook applying modified complaint handling requirements to motor finance commission complaints, effective 20 December 2024.
Budgeting Advance repayment period extended to 24 months
Budgeting Advance loans taken out from December 2024 can be repaid over 24 months rather than 12, under a change announced in the March 2024 Budget.
Barclays loses judicial review over FOS car finance ruling
The High Court upheld a Financial Ombudsman complaint against Barclays Partner Finance in December 2024, as the FCA widened its pause on car finance complaint handling.
- November 2024
BNPL draft legislation consultation closes
HM Treasury's consultation on draft legislation to bring Buy-Now Pay-Later products into regulation closed at 11:59pm on 29 November 2024, with the government saying it will now lay the draft statutory instrument.
FCA rules for borrowers in financial difficulty come into force and TSG withdrawn
The Financial Conduct Authority's final rules on protecting borrowers in financial difficulty took effect on 4 November 2024, replacing pandemic-era guidance with Handbook requirements for lenders.
FCA updates CONC 5D rules on identifying repeat overdraft use and supporting customers in financial difficulties
The Financial Conduct Authority has revised its overdraft repeat use rules, updating definitions, monitoring duties and intervention requirements for firms, including sustainability tests and objective income and expenditure assessments.
Defendants lodge Supreme Court appeal in motor finance commissions case ahead of deadline
The defendants in the motor finance commissions case have lodged an appeal with the Supreme Court, ahead of the 22 November deadline, after a Court of Appeal ruling that surprised the industry.
FCA firms required to engage early with customers in payment difficulty
Consumer credit firms have been required since November 2024 to engage early with customers in or approaching payment difficulty, under rules cited in a new review of problem debt and homelessness.
- October 2024
Court of Appeal rules for borrowers against Close Brothers and FirstRand Bank
The Court of Appeal ruled on 25 October 2024 that car finance companies acted unlawfully by not telling customers about commission earned, in a case brought against Close Brothers and FirstRand Bank.
Court of Appeal rules broker commission requires customer's informed consent
The Court of Appeal ruled on 25 October 2024 that brokers must obtain a customer's informed consent before receiving any commission from motor finance lenders, a decision that surprised the industry.
Consultation published on a regulatory regime disapplying CCA information requirements for BNPL
The Government has published an impact assessment for legislation bringing interest-free buy now pay later agreements into FCA regulation, with most Consumer Credit Act information rules disapplied.
- September 2024
Guidance on the interest rate cap updated
Government guidance on student loan interest rate caps was updated on 16 September 2024, covering Plan 2 and Plan 5 loans, with the cap applied at 6% for Plan 2 and not currently applied for Plan 5.
- June 2024
Online application service introduced for Social Fund Budgeting Loans in Great Britain
The Department for Work and Pensions has introduced an online application process for Social Fund Budgeting Loans in Great Britain, with Northern Ireland claimants still required to apply by post.
- April 2024
Around 429,000 workers start repaying student loans this April
Around 429,000 workers begin repaying student loans from April 2024, with Plan 2 graduates facing a 7.8% interest cap and a £27,295 earnings threshold before deductions.
- January 2024
FCA introduces temporary complaint-handling rules for car finance commission complaints
The Financial Conduct Authority has introduced temporary complaint-handling rules for certain car finance complaints involving discretionary commission arrangements while it assesses the motor finance market.
FCA launches car finance mis-selling investigation
The Financial Conduct Authority has opened a major investigation into car finance mis-selling, focused on discretionary commission arrangements, and paused firms' handling of related complaints.