United Kingdom: Consumer Credit

In a landmark decision, the UK Supreme Court resolved three conjoined appeals concerning the legality of commission payments made by lenders to motor dealers in hire purchase car finance arrangements.

Significant progress has been made in the last two months in shaping the regulation of Buy Now Pay Later (BNPL). The Government passed legislation on 14 July to bring Deferred Payment Credit (DPC), commonly known as BNPL...

On 1 August 2025, the UK Supreme Court delivered its judgment in the conjoined cases of Hopcraft v Close Brothers Limited...

As part of its strategy to become a ‘more outcomes-based, assertive and data led regulator', the Financial Conduct Authority (FCA) published PS25/3, introducing new reporting requirements for Consumer Credit firms...

The government's long-promised overhaul of UK consumer credit regulation has commenced. It wants to modernise this now overly complex regime that is not suited for the current digital...

Read on to understand the key arguments made by the parties and interveners in the Supreme Court hearing of the motor finance commission appeal...

The FCA is proposing new regulatory reporting requirements for credit broking, debt adjusting, counselling, and credit information services to improve market monitoring and protect consumers. Aimed at around 30,000 firms, the changes focus on collecting more specific, relevant data to identify higher-risk activities. The consultation closes on 31 October 2024, with final guidelines expected in Spring 2025.

In September, UK consumer confidence declined despite steady economic indicators, as concerns over the economic outlook rise ahead of the new government's Budget. Businesses await further stimulus for growth.

From 31 July 2024, the Consumer Duty applies to all financial products, impacting retailers offering credit. Key compliance areas include ensuring product suitability, fair pricing, transparent customer information, and robust support, especially for vulnerable customers.