Loans news: page 2
- May 2025
Government lays secondary legislation to bring BNPL under FCA regulation
The Government laid secondary legislation on 19 May 2025 to bring buy now pay later credit under Financial Conduct Authority regulation, with the regime due to start twelve months and one day after the legislation is made.
- March 2025
Green mortgage market grows from four products to over 90
The number of green mortgage products in the UK rose from four in 2019 to more than 90 in 2025, according to Green Finance Institute data, with almost 60 of them residential mortgages.
- 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FCA rules for borrowers in financial difficulty come into force and TSG withdrawn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.
- December 2023
Consumer Council research finds BNPL is second highest form of credit used
Consumer Council research published on 6 December 2023 found buy now pay later was the second highest form of credit used in Northern Ireland over the past three years.
- October 2023
FCA acts against unclear or unfair contract terms of two BNPL firms
The Financial Conduct Authority last used its powers under the Consumer Rights Act 2015 in October 2023 against two buy now pay later firms, according to a Treasury impact assessment published in May 2025.
UK Government launches consultation on bringing BNPL into FCA regulation
The UK Government opened a six-week consultation in October 2023 on draft legislation to bring buy now pay later products inside the Financial Conduct Authority's regulatory perimeter.
- September 2023
Plan 5 introduced for students starting university in 2023-24
Students starting university in England in 2023-24 borrow under Plan 5, which charges RPI-only interest, sets a lower repayment threshold and writes off debt after 40 years rather than 30.
Recent rule change makes 200,000 more benefit claimants eligible for SMI loan
A rule change to the government's Support for Mortgage Interest loan has extended eligibility to 200,000 more benefit claimants, according to Which?, which reports the figure alongside new survey findings on borrower reluctance.
- August 2023
Plan 5 applies to courses started on or after 1 August 2023
Students who began undergraduate courses through Student Finance England on or after 1 August 2023 are on repayment Plan 5, with a £25,000 income threshold and a 40-year write-off.
Student loan repayment rules changed for new students from August 2023
Students starting university from August 2023 face a lower repayment threshold of £25,000, a 40 year write-off period and interest capped at RPI, under repayment rules that differ from earlier cohorts.
- June 2023
Possession protection commitment takes effect
From 26 June 2023 lenders signed up to the Mortgage Charter will not force a borrower out of their home within a year of a first missed payment, except in exceptional circumstances.
Plan 1 to 5 loan definitions inserted by 2022 Amendment Regulations
Regulations defining plan 1 to plan 5 student loans were inserted into the Education (Student Loans) (Repayment) Regulations 2009 with effect from 6 April 2023.
Government aims to lay secondary legislation on BNPL regulation in mid-2023
HM Treasury has set out its response to the buy now pay later consultation, confirming plans to lay secondary legislation in mid-2023 that would set the scope and framework of the new regime.
- April 2023
Amendment (No. 4) Regulations 2022 changes take effect
Amendments to the Education (Student Loans) (Repayment) Regulations 2009 made by the Amendment (No. 4) Regulations 2022 took effect on 6 April 2023, changing repayment rules including a plan 5 repayment holiday.
Government consultation on BNPL regulation closes
A government consultation on regulating buy now, pay later services closed in April 2023, with the Financial Conduct Authority potentially overseeing the sector by the end of that year.