News & Analysis as of

United Kingdom Consumer Lenders Financial Services Industry

Akin Gump Strauss Hauer & Feld LLP

After the Supreme Court Judgement – What’s Next for Motor Finance Claims in the UK?

The types of consumer credit arrangements at issue in all of the relevant motor finance cases are “three-cornered” transactions. Motor dealers would offer a car for sale, which a member of the public would then see and wish...more

A&O Shearman

BNPL UK statutory instrument partially in force

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The UK statutory instrument (The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025) implementing the necessary legislative changes for progressing buy-now, pay-later (BNPL) regulation...more

Venable LLP

Crossing the Pond: What UK Fintechs Taking a Fresh Look at the U.S. Market Need to Know

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For years, UK-based consumer finance and payments firms have viewed the U.S. regulatory landscape as complex, fragmented, and challenging when it comes to expansion. But 2025 may prove to be a turning point....more

Cadwalader, Wickersham & Taft LLP

UK Supreme Court Rejects Treasury’s Intervention in Motor Finance Claims

As set out in our previous Cabinet News & Views issue of December 2024 here, the Court of Appeal has found that some commissions paid to car dealerships for arranging loans were potentially unlawful as the loan agreements did...more

A&O Shearman

UK Financial Conduct Authority Supports Expedition of Appeals of Motor Finance Decisions

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The U.K. Financial Conduct Authority has published a letter addressed to the Supreme Court regarding the applications for permission to appeal to the SC and requests for expedition in the recent motor finance commission...more

Cadwalader, Wickersham & Taft LLP

The FCA Weighs In: Hopcraft, Wrench & Johnson Case Sends Ripples Through Motor Finance

In October, the English Court of Appeal (the “Court”) in its landmark case Hopcraft, Wrench & Johnson [2024] EWCA Civ 1282, ruled it was unlawful for car dealers to receive commission from motor finance providers, unless such...more

Skadden, Arps, Slate, Meagher & Flom LLP

UK Proposes New Approach To Regulate ‘Buy Now, Pay Later’ Market Amid Rising Consumer Debt Concerns

In the UK, 14 million people used “buy now, pay later” (BNPL) at least once in the six months leading up to January 2023. Frequent users were more than four times as likely as other consumers to have missed a payment on a...more

Hogan Lovells

Buy-Now Pay-Later reform: UK government publishes updated proposals – now over to the FCA

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HM Treasury has published its long-awaited response to the February 2023 consultation on its proposed approach to bringing Buy-Now Pay-Later (BNPL) within the FCA’s regulatory perimeter. The government is clear that “swift...more

Latham & Watkins LLP

Consumer Duty Update: FCA Issues Dear CEO/Director Letters Setting Priorities for Sectors

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The letters ask senior management to prioritise implementing the Duty. On 3 February 2023, the FCA published Dear CEO/Director letters underscoring the immediate (i.e., during the implementation period up until 31 July...more

Hogan Lovells

Attention lenders: UK FCA proposals to improve the credit information sector

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The UK Financial Conduct Authority (FCA) has set out new proposals for the credit information market to help deliver better lending decisions for borrowers. The proposals will be of interest to firms in the consumer lending...more

Hogan Lovells

UK Consumer Credit Act 1974: Government Commits To 'Ambitious Long-Term Reform'

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Almost 50 years after its entry into force, HM Treasury has announced a commitment to reform the Consumer Credit Act 1974 (CCA) with a plan to consult on the direction of reform by the end of this year. The reforms will build...more

Hogan Lovells

New FCA consumer credit information sheets in use from 25 October

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It’s just under three weeks until consumer credit firms must start using the FCA’s updated consumer credit information sheets which were published in May this year. In May 2021, the FCA updated its webpage on consumer...more

Hogan Lovells

Consumer finance regulatory news, December 2020

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Mainstream consumer credit lenders: FCA Dear Board of Directors letter on supervisory strategy - The UK Financial Conduct Authority (FCA) has published a Dear Board of Directors letter sent to firms in the FCA's...more

Orrick, Herrington & Sutcliffe LLP

The LIBOR Transition – What a Legacy!: Legislative Solutions/ Constitutional Law Considerations

As noted in our Financial Industry Alert published on January 17, 2020, one of the most daunting challenges for the forthcoming transition from LIBOR to an alternative reference rate has to be the impact of the prospective...more

A&O Shearman

UK Government Responds to Committee Report on Conduct Authority's Perimeter of Regulation

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The U.K. government has published a response to the Treasury Committee's report on the Financial Conduct Authority's perimeter of regulation. The Committee's Report is part of its ongoing inquiry, The Work of the Financial...more

Dorsey & Whitney LLP

Preparing for LIBOR Substitution - Commercial and Consumer Lending Considerations

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As of December 31, 2021 (the “Effective Date”), the use of LIBOR as an index for commercial and consumer loans will likely cease - which presents lenders and other industry participants with the challenges to address: (a) the...more

A&O Shearman

HM Treasury Seeks Input on the Future of Regulatory Coordination in Financial Services

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Launching the first phase of the Future Regulatory Framework Review, HM Treasury has issued a call for evidence on regulatory coordination in the financial services sector. The Financial Services Future Regulatory Framework...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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It was quite a run, but on Thursday, ECB chief Mario Draghi announced that the bank is finally putting an end to the quantitative easing program it’s used “to hold down interest rates and encourage lending” since 2015.  ...more

Hogan Lovells

Hard Brexit: implications for banking, payments and consumer finance products

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To ensure the financial system continues to work effectively if there is a "hard Brexit" HM Treasury has been finalising a series of statutory instruments which will ensure there is a workable legal framework for retail...more

Latham & Watkins LLP

Consumer Credit Update

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This update takes a look at the FCA’s Interim Report and its initial views relating to the review of the provisions of the Consumer Credit Act 1974 (CCA), which show early signs of a more pragmatic approach to regulation than...more

Orrick, Herrington & Sutcliffe LLP

Orrick's Financial Industry Week In Review

Agencies Propose Simplifying Regulatory Capital Rules - On September 27, 2017, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Office of the Comptroller of the Currency announced a proposed...more

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